Zoro, Inc. produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit? a. 5,000 b. 7,500 c. 8,333 d. 12,500

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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Zoro, Inc. produces a product that has a
variable cost of $6 per unit. The company's
fixed costs are $30,000. The product sells for
$10 a unit and the company desires to earn a
$20,000 profit.
What is the volume of sales in units required
to achieve the target profit?
a. 5,000
b. 7,500
c. 8,333
d. 12,500
Transcribed Image Text:Zoro, Inc. produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit? a. 5,000 b. 7,500 c. 8,333 d. 12,500
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