A new product marketing push is being contemplated by Vanek Co.

Fixed costs to be incurred are $700,000 for production of 80,000 units or less and $1,000,000 for more than 80,000 units.

The contribution margin ratio is 30% for the first 80,000 units, and it increases to 40% for units in excess of 80,000.

The product is expected to sell for $25 per unit.

How many units must Vanek Co. sell to earn a profit of $250,000?

Answer rating: 100% (QA)

To determine the number of units Vanek Co must sell to earn a profit of 250000 we need to calculate ... View the full answer