Required in order to meet minimum profit goal

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Reference no: EM131566098

A group of venture investors is considering putting money into Lemma Books, which wants to produce a new reader for electronic books. The variable cost per unit is estimated at $200, the sales price would be set at twice the VC/unit, or $400, and fixed costs are estimated at $350,000. The investors will put up the funds if the project is likely to have an operating income of $750,000 or more. What sales volume would be required in order to meet the minimum profit goal? (Hint: Use the break-even formula, but include the required profit in the numerator.) A) 3,706 B) 3,400 C) 5,500 D) 6,250 E) 7,100

Reference no: EM131566098

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