ASD Limited manufactures ovens with a selling price of $1,400. Currently, variable costs are $600 per unit
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ASD Limited manufactures ovens with a selling price of $1,400. Currently, variable costs are $600 per unit and fixed costs are $100,000 per year. In the year just ended, the company only managed to sell 155 units and was well short of its profit target of $60,000. In an effort to increase sales, sales commissions will be increased by $100 per unit. All other costs are expected to remain the same.
How many ovens must be sold to reach the profit target of $60,000?
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