Baird Corporation is a manufacturing company that makes small electric motors it sells for $50 per unit. The variable costs of production are $30 per motor, and annual fixed costs of production are $360,000. Required a. How many units of product must Baird make and sell to break even? b. How many units of product must Baird make and sell to earn a $60,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $45 per unit. How many units of product must Baird make and sell to earn a $78,000 profit, if the sales price is set at $45 per unit? a. Sales volume b. Sales volume c. Sales volume units units units
Baird Corporation is a manufacturing company that makes small electric motors it sells for $50 per unit. The variable costs of production are $30 per motor, and annual fixed costs of production are $360,000. Required a. How many units of product must Baird make and sell to break even? b. How many units of product must Baird make and sell to earn a $60,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $45 per unit. How many units of product must Baird make and sell to earn a $78,000 profit, if the sales price is set at $45 per unit? a. Sales volume b. Sales volume c. Sales volume units units units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Baird Corporation is a manufacturing company that makes small electric
motors it sells for $50 per unit. The variable costs of production are $30 per
motor, and annual fixed costs of production are $360,000.
Required
a. How many units of product must Baird make and sell to break even?
b. How many units of product must Baird make and sell to earn a $60,000
profit?
c. The marketing manager believes that sales would increase dramatically if
the price were reduced to $45 per unit. How many units of product must
Baird make and sell to earn a $78,000 profit, if the sales price is set at $45
per unit?
a. Sales volume
b. Sales volume
c. Sales volume
units
units
units
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