Estimates its variable cost per unit

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Toy Corp. is analyzing producing and selling a revolutionary simulation computer gaming system. The company estimates its variable cost per unit will be $600 and each system's sales price would be set at 150% of its variable cost per unit. Further assume that the company's fixed costs are estimated at $330,000, interest expense will be $30,000, and that the company's investors will only put up the funds if the project is likely to have an operating income of at least $75,000. What sales volume would be required in order to meet this profit goal?

The answer is 1350, will you show the work?

Reference no: EM131318183

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