Austin Manufacturing had the following operating data for the year just ended. Management plans to improve the quality of its only product by: (1)replacing a component that costs $3.50 with a higher-grade component that costs $5.50 and (2)renting a packing machine for $18,000 a year.If the desired target profit is $288,000,how many units must the company sell?

Question

Austin Manufacturing had the following operating data for the year just ended.  Management plans to improve the quality of its only product by: (1)replacing a component that costs $3.50 with a higher-grade component that costs $5.50 and (2)renting a packing machine for $18,000 a year.If the desired target profit is $288,000,how many units must the company sell?

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The Answer of Austin Manufacturing had the following operating data for the year just ended.  Management plans to improve the quality of its only product by: (1)replacing a component that costs $3.50 with a higher-grade component that costs $5.50 and (2)renting a packing machine for $18,000 a year.If the desired target profit is $288,000,how many units must the company sell?

Austin Manufacturing Had the Following Operating Data for the Year