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Sunglo Corporation Sunglo Corporation Manufactures and Sells Two Products: a and B)The

Question 89

Multiple Choice

Sunglo Corporation Sunglo Corporation manufactures and sells two products: A and B) The operating results of the company are as follows: Product AProduct B Sales in units 3,0004,000 Sales price per unit $12$7 Variable costs per unit 64\begin{array}{lll}&\text{Product A}&\text{Product B}\\\hline\text { Sales in units } & 3,000 & 4,000 \\\text { Sales price per unit } & \$ 12 & \$ 7 \\\text { Variable costs per unit } & 6 & 4\end{array} In addition,the company incurred total fixed costs in the amount of $10,000.
Refer to Sunglo Corporation.How many units would the company need to sell to produce a before-tax profit of $20,000?


A) 6,000
B) 6,250
C) 6,923
D) 7,000

Correct Answer:

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