How many units of a product would have to be sold if total fixed costs are $300, desired profit for the product is $2,000, the price at which the product is selling is $15, and the average variable cost is $8?

Question

Quizplus · Accepted Answer

Explanation:To calculate the number of units that need to be sold, we can use the formula:Units = (Fixed Costs + Desired Profit) / (Price - Average Variable Cost)Plugging in the given values, we get:Units = (300 + 2000) / (15 - 8)Units = 2300 / 7Units = 328.57Since we can't sell a fraction of a unit, we round up to the nearest whole number, which is 329 units.

How Many Units of a Product Would Have to Be