To manufacture 15 000 units the total variable cost is 48,000. the fixed costs total is 27,000. If the company wants to make 40,000 profit, how much should the company sell the items for? a. $7.67 b. $2.33 c. $8.93 d. $5.00

To manufacture 15 000 units the total variable cost is 48,000. the fixed costs total is 27,000. If the company wants to make 40,000 profit, how much should the company sell the items for? a. $7.67 b. $2.33 c. $8.93 d. $5.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

To manufacture 15 000 units the total variable cost is 48,000. the fixed costs total is 27,000. If the company wants to make 40,000 profit, how much should the company sell the items for?

a. $7.67

b. $2.33

c. $8.93

d. $5.00

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