Question

Casey Corporation 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?



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  • CreatedFebruary 07, 2014
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