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How many units must the company sell to earn a target profit

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Reference no: EM133026482

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Q1. Assume a company produces one product that sells for $55, has a variable cost per unit of $35, and has fixed costs of $ 100,000. How many units must the company sell to earn a target profit of $50,000?

12,500 units

7500 units

10,000 units

15,000 units

Q2. Given the same facts as in question above, if the company exactly meets its target profit, what will be its margin of safety in sales dollars?

$127,500

$150,000

$110,000

$137,500

Reference no: EM133026482

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