Cadenza Manufacturing Inc. reported sales of $4,200,000 for the month and incurred variable expenses totalling $2,600,000 and fixed expenses totalling $1,000,000. The company has no beginning or ending inventories. A total of 60,000 units were produced and sold last month. How many units would the company have to sell to achieve a desired profit of $600,000? a. 90,000 units b. 75,000 units c. 60,000 units d. 80,000 units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...
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Cadenza Manufacturing Inc. reported sales of $4,200,000 for the month and
incurred variable expenses totalling $2,600,000 and fixed expenses totalling
$1,000,000. The company has no beginning or ending inventories. A total of
60,000 units were produced and sold last month. How many units would the
company have to sell to achieve a desired profit of $600,000?
a. 90,000 units
b. 75,000 units
c. 60,000 units
d. 80,000 units
Transcribed Image Text:Cadenza Manufacturing Inc. reported sales of $4,200,000 for the month and incurred variable expenses totalling $2,600,000 and fixed expenses totalling $1,000,000. The company has no beginning or ending inventories. A total of 60,000 units were produced and sold last month. How many units would the company have to sell to achieve a desired profit of $600,000? a. 90,000 units b. 75,000 units c. 60,000 units d. 80,000 units
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