Suppose Audrey spends another $10,000 to improve the process of making the plastic gears; she can cut
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Suppose Audrey spends another $10,000 to improve the process of making the plastic gears; she can cut down the variable cost per unit from $6.12 to $5.90. How many units will she have to sell to make a profit equal to 25 percent of revenue at a selling price of $22 per unit?Hint: From the previous element, fixed cost = 390,000. So, Profit = 25% of Revenue = (Price- new unit variable cost)*quantity- fixed cost, where Revenue = price * quantity. Solve for quantity.Group of answer choices38,19337,57224,84537,736
Related Book For
Managerial Economics Theory Applications and Cases
ISBN: 978-0393912777
8th edition
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
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