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XYZ Corporation manufactures a product with a variable cost of 8 per unit and fixed costs of 120,000 The selling price for each unit is 15 Determine the number of units that must be sold for the company to earn a profit of 50,000

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XYZ Corporation manufactures a product with a variable cost of
 8 per unit and fixed costs of 120,000 The selling price for each
unit is 15
Determine the number of units that must be sold for
the company to earn a profit of
 50,000

XYZ Corporation manufactures a product with a variable cost of 8 per unit and fixed costs of 120,000 The selling price for each unit is 15 Determine the number of units that must be sold for the company to earn a profit of 50,000

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To determine the number of units that must be sold for XYZ Corporation to earn a profit of $50,000, we need to use the formula for calculating profit:<br /><br />Profit = (Selling Price per Unit - Variable Cost per Unit) * Number of Units Sold - Fixed Costs<br /><br />Given:<br />- Variable Cost per Unit = $8<br />- Selling Price per Unit = $15<br />- Fixed Costs = $120,000<br />- Desired Profit = $50,000<br /><br />Let's plug in the values and solve for the number of units sold:<br /><br />Profit = ($15 - $8) * Number of Units Sold - $120,000<br />$50,000 = ($15 - $8) * Number of Units Sold - $120,000<br /><br />Simplifying the equation:<br />$50,000 + $120,000 = ($15 - $8) * Number of Units Sold<br />$170,000 = $7 * Number of Units Sold<br /><br />Dividing both sides by $7:<br />Number of Units Sold = $170,000 / $7<br />Number of Units Sold = 24,285.71<br /><br />Therefore, XYZ Corporation must sell approximately 24,286 units to earn a profit of $50,000.
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