Cunningham, Inc.sells MP3 players for $60 each.Variable costs are $40 per unit, and fixed costs total $90,000.How many MP3 players must Cunningham sell to earn net income of $210,000?
A)15,000.
B)5,250.
C)3,750.
D)4,500.

Question

Quizplus · Accepted Answer

To find the number of MP3 players needed to be sold to earn a net income of $210,000, use the formula: (Fixed Costs + Desired Net Income) / (Selling Price per Unit - Variable Cost per Unit). Here, it is ($90,000 + $210,000) / ($60 - $40) = 15,000 units.