Casey Corporation is a manufacturing company that makes small electric motors it sells for $25 per unit.

Question:

Casey is a manufacturing company that makes small electric motors it sells for $25 per unit. The variable costs of production are $10 per motor, and annual fixed costs of production are $390,000.

Required
a. How many units of product must Casey make and sell to break even?
b. How many units of product must Casey make and sell to earn a $114,000 profit?
c. The marketing manager believes that sales would increase dramatically if the price were reduced to $20 per unit. How many units of product must Casey make and sell to earn a $114,000 profit, if the sales price is set at $20 per unit?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...