Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) О a. 33 О Б. 40 51 O d. None of the given answers О е. 72

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable
manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The
fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the
number of units needed to achieve an operating profit of $8,000. (round to the nearest number)
O a.
33
O b. 40
O C.
51
Od.
None of the given answers
O e. 72
Transcribed Image Text:Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) O a. 33 O b. 40 O C. 51 Od. None of the given answers O e. 72
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