Megan,Inc.has fixed costs of $400,000,sales price of $40,and variable cost of $30 per unit.How many units must be sold to earn profit of $80,000?

Question

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To calculate the number of units needed to be sold to earn a profit of $80,000, we use the formula: (Fixed Costs + Desired Profit) / (Sales Price - Variable Cost). Here, it is ($400,000 + $80,000) / ($40 - $30) = $480,000 / $10 = 48,000 units.

Megan,IncHas Fixed Costs of $400,000,sales Price of $40,and Variable Cost