How many units must company sell? Rock Corporation sells its product for$16 per unit. Next year, fixed expensesare expected to be $454,000 andvariable expenses are expected to be$9 per unit. How many units must thecompany sell to generate a netoperating income of $92,000?

Explanation of Selling Price: Selling price is the amount a company charges customers for each unit…

Answered: Rock Corporation sells its product for…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Rock Corporation sells its product for $16 per unit. Next year, fixed expenses are expected to be $454,000 and variable expenses are expected to be $9 per unit. How many units must the company sell to generate a net operating income of $92,000?