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Question - A company desires to sell a sufficient quantity of products to earn a profit of $400,000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $800,000, how many units must be sold to earn net income of $400,000?
a. 225,000 units
b. 150,000 units
c. 120,000 units
d. 90,000 units
The variable costs per unit are $5 when total output is 8,000 units. What are the per unit variable costs when the company produces 10,000 units?
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