Altratex is the manufacturer of electronic power stabilizers. The company has spent $50,000 toward the purchase of capital goods and machinery. It has also paid $8,000 toward annual building maintenance and $1,500 for annual insurance premium. The company has 15 permanent employees who earn an annual salary of $1,500 each. The company pays a 10 percent commission to retailers. The other variable costs for producing a stabilizer is $15. How many units should the company sell in order to recover its investment if each unit is priced at $40?
A) 2175
B) 4579
C) 3132
D) 3905
E) 2833
Correct Answer:
Verified
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