Tokless Inc. planned and manufactured 400,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs were $50 per unit of production. Planned and fixed manufacturing costs were $800,000. Marketing and administrative costs (all fixed) were $600,000 in 2019. Tokless Inc. sold 195,000 units of product in 2019 at $65 per unit.

Sales for 2019 are calculated to be:

Question

Sales for 2019 are calculated to be:

Quizplus · Accepted Answer

Sales are calculated by multiplying the number of units sold by the selling price per unit. In this case, 195,000 units were sold at $65 each, so sales = 195,000 units * $65/unit = $12,675,000.