Houston Company produces a product that sells for $175 per unit and has variable costs of $50 per unit.Houston's annual fixed costs are $200,000,and the company wishes to earn a profit of $80,000.
Required:
Use the equation method to determine the sales volume in units and dollars required to earn the desired profit.

Question

Quizplus · Accepted Answer

The Answer of Houston Company produces a product that sells for $175 per unit and has variable costs of $50 per unit.Houston's annual fixed costs are $200,000,and the company wishes to earn a profit of $80,000.
Required:
Use the equation method to determine the sales volume in units and dollars required to earn the desired profit.

Houston Company Produces a Product That Sells for $175 Per