Perez Corporation is a manufacturing company that makes small electric motors it sells for $38 per...

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Perez Corporation is a manufacturing company that makes small electric motors it sells for $38 per unit. The variable costs of production are $26 per motor, and annual fixed costs of production are $240,000. Required a. How many units of product must Perez make and sell to break even? b. How many units of product must Perez make and sell to earn a $72,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $34 per unit. How many units of product must Perez make and sell to earn a $93,600 profit, if the sales price is set at $34 per unit? a. Sales volume b. Sales volume units units c. Sales volume units S Perez Corporation is a manufacturing company that makes small electric motors it sells for $38 per unit. The variable costs of production are $26 per motor, and annual fixed costs of production are $240,000. Required a. How many units of product must Perez make and sell to break even? b. How many units of product must Perez make and sell to earn a $72,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $34 per unit. How many units of product must Perez make and sell to earn a $93,600 profit, if the sales price is set at $34 per unit? a. Sales volume b. Sales volume units units c. Sales volume units S

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ANSWER To solve this problem we need to use the concept of breakeven analysis and profitvolume analy... View the full answer