Spach Corporation manufactures numerous products, one of which is called Beta68. The company has provided the following data about this product:

-Assume that the total traceable fixed expense does not change.How many units of product Beta68 would Spach need to sell at a price of $15.20 to earn the same net operating income that it currently earns at a price of $16.00? (Round your answer up to the nearest whole number.)
A) 126,924
B) 111,538
C) 96,667
D) 121,000

Question

Spach Corporation manufactures numerous products, one of which is called Beta68. The company has provided the following data about this product:
 
-Assume that the total traceable fixed expense does not change.How many units of product Beta68 would Spach need to sell at a price of $15.20 to earn the same net operating income that it currently earns at a price of $16.00? (Round your answer up to the nearest whole number.)
A) 126,924 
B) 111,538 
C) 96,667 
D) 121,000

Quizplus · Accepted Answer

Profit = (P - V) × Q - Fixed expenses
$80,000 = ($15.20 per unit - $10.00 per unit) × Q - $580,000
$660,000 = ($15.20 per unit - $10.00 per unit) × Q
$660,000 = ($5.20 per unit) × Q
Q = $660,000 ÷ $5.20 per unit = 126,924 units (rounded up)

Spach Corporation Manufactures Numerous Products, One of Which Is Called