Boggess Corporation manufactures numerous products, one of which is called Alpha41. 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 Alpha41 would Boggess need to sell at a price of $94.60 to earn the same net operating income that it currently earns at a price of $86.00? (Round your answer up to the nearest whole number.)
A) 96,000
B) 92,554
C) 83,777
D) 108,621

Question

Boggess Corporation manufactures numerous products, one of which is called Alpha41. 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 Alpha41 would Boggess need to sell at a price of $94.60 to earn the same net operating income that it currently earns at a price of $86.00? (Round your answer up to the nearest whole number.)
A) 96,000 
B) 92,554 
C) 83,777 
D) 108,621

Quizplus · Accepted Answer

Profit = (P - V) × Q - Fixed expenses
$330,000 = ($94.60 per unit - $57.00 per unit) × Q - $3,150,000
$3,480,000 = ($94.60 per unit - $57.00 per unit) × Q
$3,480,000 = ($37.60 per unit) × Q
Q = $3,480,000 ÷ $37.60 per unit = 92,554 units (rounded up)

Boggess Corporation Manufactures Numerous Products, One of Which Is Called