A company has developed a new product. Market price of the product is $10 per unit, variable costs are $6 per unit and total fixed costs are $100 000. Suppose that the company sets a target of $2 of profit per unit. How many units should be produced to meet the target?
A)10 000
B)20 000
C)30 000
D)40 000
E)50 000

Question

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The Answer of A company has developed a new product. Market price of the product is $10 per unit, variable costs are $6 per unit and total fixed costs are $100 000. Suppose that the company sets a target of $2 of profit per unit. How many units should be produced to meet the target?
A)10 000
B)20 000
C)30 000
D)40 000
E)50 000

A Company Has Developed a New Product