G 'If the unit sales price is $16, variable costs are $4 per unit and fixed costs are $14,000, how many
3 answers
Question:
g "If the unit sales price is $16, variable costs are $4 per unit and fixed costs are $14,000, how many units must be sold to earn an income of $160,000?"
Answers
14,500
Explanation:
Income = Total revenue - Total cost
Total cost = total Fixed cost + Total variable cost
total Fixed cost = $14,000
Total Variable costs = variable cost per unit x quantity = $4q
Total cost = $14,000 + $4q
Total revenue = price x quantity = $16q
$160,000 = = $16q - $14,000 - $4q
$174,000 = $12q
Q = 14,500
I hope my answer helps you
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