Rose Corporation sells backpacks.Variable costs for this product are $30 per unit,and the sales price per unit is $50 per unit.Total fixed costs amount to $100,000.How many backpacks does Rose need to sell to achieve a desired profit of $60,000?
A) 2,000 units
B) 5,000 units
C) 5,333 units
D) 8,000 units

Question

Quizplus · Accepted Answer

To find the number of units needed to achieve a desired profit, use the formula: (Fixed Costs + Desired Profit) / (Sales Price per Unit - Variable Cost per Unit). Here, it is ($100,000 + $60,000) / ($50 - $30) = 8,000 units.

Rose Corporation Sells Backpacks