Reference no: EM132998930

Question - JVI Company is developing a new vaccine which can protect against 200 different types of corona viruses. The company claims to be the pioneer in the industry with its new formula which ensures that a single dose is all it takes to vaccine against all of the 200 corona viruses. While the fixed costs are high for the manufacturing process at $200,000, it will be offset by the expected production volumes. The controller of the company, Jacob, is currently looking at the financial data from some of the recent batches produced. He sees that the sales totalled $500,000 that vaccinated exactly 1000 people. The controller was happy to see that the variable cost of the batches produced totalled $360,000. He is not sure if the $60,000 cost of inventory left on hand will be sold soon.

The CEO has called the controller into her office and is interested in knowing more about the prospects of the increased sales. The very first question asked by the CEO is "Jacob, how many doses do we need to sell to generate a profit of $1 million".

Required - Advise the controller on the number of doses that need to be sold to generate a profit of $1 million.