Use the information below to answer the following questions.
The accountant from Trigg Traders examined the following report:
Income statement (extract) for year ended 31 December 2016 The accountant of Trigg Traders estimated that the quantity of sales would double in 2017 and the unit cost would increase to
$25.
-Refer to the table above. If the unit cost for 2016 had increased to $30, how many units would have needed to be sold in 2016 to generate a gross profit of $150,000?
A) 7,000 units
B) 7,500 units
C) 8,000 units
D) 6,500 units

Question

Use the information below to answer the following questions.
The accountant from Trigg Traders examined the following report:
Income statement (extract) for year ended 31 December 2016  The accountant of Trigg Traders estimated that the quantity of sales would double in 2017 and the unit cost would increase to
$25.
-Refer to the table above. If the unit cost for 2016 had increased to $30, how many units would have needed to be sold in 2016 to generate a gross profit of $150,000?
A) 7,000 units 
B) 7,500 units 
C) 8,000 units 
D) 6,500 units

Quizplus · Accepted Answer

To generate a gross profit of $150,000 with a unit cost of $30, we first need to determine the selling price per unit or any other given financial metrics from the original table, which is not provided in the question. However, assuming we know the selling price or can calculate gross profit per unit, we can use the formula for gross profit: Gross Profit = (Selling Price - Unit Cost) * Number of Units Sold. Rearranging this formula to solve for the number of units sold gives us: Number of Units Sold = Gross Profit / (Selling Price - Unit Cost). Without the selling price, we can't perform the exact calculation, but the correct approach involves using this formula once the selling price is known or inferred. Given the choices provided and assuming a specific scenario where the calculation accurately leads to one of the options, option B is indicated as the correct answer, suggesting a specific calculation based on the increased unit cost to $30 and aiming for a $150,000 gross profit. However, the exact calculation depends on additional information not provided in the question.

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