A company produces a single product that sells for $12 per unit, and the variable cost per unit is $7. The fixed costs are $80,000 per period. What sales volume in units is required to earn a profit of $55,000 per period? a. 15,000 b. 27,000 c. 25,000 d. 30,000

A company produces a single product that sells for $12 per unit, and the variable cost per unit is $7. The fixed costs are $80,000 per period. What sales volume in units is required to earn a profit of $55,000 per period? a. 15,000 b. 27,000 c. 25,000 d. 30,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

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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Question

I need help finding the accurate solution to this general accounting problem with valid methods.

A company produces a single product that sells for $12 per
unit, and the variable cost per unit is $7. The fixed costs
are $80,000 per period. What sales volume in units is
required to earn a profit of $55,000 per period?
a. 15,000
b. 27,000
c. 25,000
d. 30,000

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