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The company is interested in knowing the number of units it must have to recover its total costs.
info: The plant capacity is 55,000 units. The variable cost per unit (Variable Cost) is $ 17. The profit obtained on each unit sold (Unit Contribution Margin) is $ 22, the sale price is $ 40. Total Fixed Cost is $ 550,000. The tax rate (Tax Rate) 15%. Desired Profit is $ 85,000.Total income $ 1,494,120Net income $ 561,000
I think is 550,000/22 =25,000 units. Can you double check is correct?
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