Tommy Company has a variable cost percentage of 20% on a product that sells for $25 per unit. Fixed costs are $12,500. Tommy wants to know how many units must be sold to:
a. Break even
b. Earn a profit of $14,000
Ignore income taxes.

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The Answer of Tommy Company has a variable cost percentage of 20% on a product that sells for $25 per unit. Fixed costs are $12,500. Tommy wants to know how many units must be sold to:
a. Break even
b. Earn a profit of $14,000
Ignore income taxes.

Tommy Company Has a Variable Cost Percentage of 20% on a Product