Question: in both units and dollars please LO 3-2 Exercise 3-7A Cost-volume-profit relationship Stone Corporation is a manufacturing company that makes smull electric motors it sells

in both units and dollars please in both units and dollars please LO 3-2 Exercise 3-7A Cost-volume-profit relationship

LO 3-2 Exercise 3-7A Cost-volume-profit relationship Stone Corporation is a manufacturing company that makes smull electric motors it sells for $45 per unit. The variable costs of production are S25 per motor, and annual fixed costs of production are $800,000 Required 1. How many units of product must stone make and sell to break even? b. How many units of product must Sune make and sell to cun a $120,000 profil? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $40 per unit. How many units of product must Stone make and sell to earn a S160,000 profit, if the sales price is set at $40 per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!