Weitman Corporation manufactures numerous products, one of which is called Epsilon50. 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 Epsilon50 would Weitman need to sell at a price of $31.61 to earn the same net operating income that it currently earns at a price of $29.00? (Round your answer up to the nearest whole number.)
A) 105,070
B) 116,364
C) 110,500
D) 94,048

Question

Weitman Corporation manufactures numerous products, one of which is called Epsilon50. 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 Epsilon50 would Weitman need to sell at a price of $31.61 to earn the same net operating income that it currently earns at a price of $29.00? (Round your answer up to the nearest whole number.)
A) 105,070 
B) 116,364 
C) 110,500 
D) 94,048

Quizplus · Accepted Answer

Profit = (P - V) × Q - Fixed expenses
$150,000 = ($31.61 per unit - $18.00 per unit) × Q - $1,280,000
$1,430,000 = ($31.61 per unit - $18.00 per unit) × Q
$1,430,000 = ($13.61 per unit) × Q
Q = $1,430,000 ÷ $13.61 per unit = 105,070 units (rounded up)

Weitman Corporation Manufactures Numerous Products, One of Which Is Called