A company has a unit selling price of $30, unit variable costs of $22, fixed costs of $24,000, and wants to earn a profit of $36,000. How many units must they sell to achieve this target? A. 5,000 B. 7,500 C. 8,000 D. 10,000

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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A company has a unit selling price of $30, unit
variable costs of $22, fixed costs of $24,000, and
wants to earn a profit of $36,000. How many units
must they sell to achieve this target?
A. 5,000
B. 7,500
C. 8,000
D. 10,000
Transcribed Image Text:A company has a unit selling price of $30, unit variable costs of $22, fixed costs of $24,000, and wants to earn a profit of $36,000. How many units must they sell to achieve this target? A. 5,000 B. 7,500 C. 8,000 D. 10,000
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