Stewart Company
The following information relates to financial projections of Stewart Company:
Projected sales 60,000 units
Projected variable costs $ \$ 2.00 $ per unit
Projectedfixed costs $ \$ 50,000 $ per year
Projected unit sales price $ \$ 7.00 $

Refer to Stewart Company.How many units would Stewart Company need to sell to earn a profit before taxes of $10,000?
A)25,714
B)10,000
C)8,571
D)12,000

Question

Stewart Company
The following information relates to financial projections of Stewart Company:
Projected sales                                                        60,000 units
Projected variable costs                                           $ \$ 2.00 $ per unit
Projectedfixed costs                                                $ \$ 50,000 $ per year
Projected unit sales price                                        $ \$ 7.00 $

Refer to Stewart Company.How many units would Stewart Company need to sell to earn a profit before taxes of $10,000?
A)25,714
B)10,000
C)8,571
D)12,000

Quizplus · Accepted Answer

To find the number of units needed to earn a profit before taxes of $10,000, use the formula: (Fixed Costs + Desired Profit) / (Sales Price per Unit - Variable Cost per Unit). This gives (50,000 + 10,000) / (7 - 2) = 12,000 units.

Stewart Company the Following Information Relates to Financial Projections of Stewart

Stewart Company
the Following Information Relates to Financial Projections of Stewart