Vesper Company has sales of $200,000,variable costs of $8 per unit,fixed costs of $50,000,and a profit of $30,000.How many units were sold?
A)10,000
B)15,000
C)20,000
D)25,000

Question

Quizplus · Accepted Answer

The profit formula is Profit = Sales - Variable Costs - Fixed Costs. Given that Profit = $30,000, Sales = $200,000, and Fixed Costs = $50,000, we can calculate the total variable costs. First, find the profit plus fixed costs: $30,000 + $50,000 = $80,000. This means the variable costs must be $200,000 - $80,000 = $120,000. Since each unit has a variable cost of $8, divide the total variable costs by the cost per unit to find the number of units: $120,000 / $8 = 15,000 units.

Vesper Company Has Sales of $200,000,variable Costs of $8 Per