Saved Metet, Inc. has fed costs of $257,000, sales price of $54, and variable cost of $32 per unit How many units must be sold to earn profit of $29,000? 5 Mpr Choicr 1000 20.500 2.00
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![### Business Profitability Calculation
#### Problem Statement:
Merlot, Inc. has fixed costs of $257,000, a sales price of $54 per unit, and a variable cost of $32 per unit. How many units must be sold to earn a profit of $29,000?
#### Multiple Choice Options:
- 3,000
- 20,500
- 13,000
- 11,500
### Explanation:
To solve this problem, you'll need to calculate the break-even point first and then determine the number of additional units required to achieve the desired profit.
**Break-even point formula:**
\[ \text{Break-even point (units)} = \frac{\text{Fixed Costs}}{\text{Sales Price per Unit} - \text{Variable Cost per Unit}} \]
**Profit target formula:**
\[ \text{Profit target (units)} = \text{Break-even point (units)} + \frac{\text{Desired Profit}}{\text{Sales Price per Unit} - \text{Variable Cost per Unit}} \]
Utilize these formulas to determine the correct number of units from the provided options.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F722bea73-1b23-42a9-a20d-4d3ae022af80%2F8f03a29b-4ae9-4135-826b-b64063ac7329%2Fv4kknx9_processed.jpeg&w=3840&q=75)
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