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How many units must the company sell

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Reference no: EM133147862

Question - Austin Manufacturing had the following operating data for the year just ended:

Selling price per unit $60 per unit

Variable expense per unit $22 per unit

Fixed expenses $504,000

Management plans to improve the quality of its only product by replacing a component that costs $3.50 with a higher-grade component that costs $5.50, and renting a packing machine for $18,000 a year. If the desired target operating profit is $288,000, how many units must the company sell?

Reference no: EM133147862

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