Question: ABC, Inc. produces a product that has a variable cost of $10.00 per unit. The company's fixed costs are $95,000. The product is sold for
ABC, Inc. produces a product that has a variable cost of $10.00 per unit. The company's fixed costs are $95,000. The product is sold for $15.00 per unit and the company desires to earn a target profit of $150,000. What is the amount of sales that will be necessary to earn the desired profit?
| a. | $100,000 | |
| b. | $735,000 | |
| c. | $285,000 | |
| d. | $49,000 |
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