Answer:
To obtain a profit of $15,600, the company needs to sell 6,700 units.
Explanation:
Giving the following information:
A product sells for $300 per unit, and its variable costs per unit are $232. Total fixed costs are $440,000
Desired profit= $15,600
To calculate the number of units required, we need to use the break-even point formula. We need to include the desired profit in the formula:
Break-even point= (fixed costs + desired profit) / contribution margin
Break-even point= ( 440,000 + 15,600) / (300 - 232)
Break-even point= 6,700 units
To obtain a profit of $15,600, the company needs to sell 6,700 units.
