Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold):

	Total Annual Costs (150,000 units)
Direct Material	$200,000
Direct Labor	$180,000
Manufacturing overhead	$150,000
Selling, general, and administrative	$100,000

Total = $630,000

a) Compute Breed's unit selling price that will yield a profit of $600,000, given sales of 150,000 units

b) Compute Breed's dollar sales that will yield a projected 24% profit on sales, assuming variable costs per unit are 60% of the selling price per unit and fixed costs are $347,200.

c) Management believes that a selling price of $9 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)?

Answer rating: 100% (QA)

Answer a Compute Breeds unit selling price that will yield a profit of 600000 given sales of 15... View the full answer