Robin Me Blind, Inc. desires to sell a sufficient quantity of her new magazine (Government Worker) to earn a profit of $80,000. She believes in market-based transfer pricing. If the magazine sales price is $20, the variable cost per magazine is $12, total fixed costs are $610,000, gold is selling at $1350 per ounce, and Hood College is operating at full capacity, how many units must Bonita Banana sell to earn the $80,000 profit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
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Robin Me Blind, Inc. desires to sell a sufficient quantity of her new
magazine (Government Worker) to earn a profit of $80,000. She
believes in market-based transfer pricing. If the magazine sales
price is $20, the variable cost per magazine is $12, total fixed costs
are $610,000, gold is selling at $1350 per ounce, and Hood College
is operating at full capacity, how many units must Bonita Banana
sell to earn the $80,000 profit?
Transcribed Image Text:Robin Me Blind, Inc. desires to sell a sufficient quantity of her new magazine (Government Worker) to earn a profit of $80,000. She believes in market-based transfer pricing. If the magazine sales price is $20, the variable cost per magazine is $12, total fixed costs are $610,000, gold is selling at $1350 per ounce, and Hood College is operating at full capacity, how many units must Bonita Banana sell to earn the $80,000 profit?
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