Kuldip's factory manufactures toys that sell for $29.95 each. The variable cost per toy is $11, and the total fixed costs for the month are $45,000. What would unit sales have to be to attain a net income over $8,000?

Question

Quizplus · Accepted Answer

To find the unit sales needed to attain a net income over $8,000, we use the formula: Net Income = (Selling Price - Variable Cost) * Units - Fixed Costs. Plugging in the values: $8,000 = ($29.95 - $11) * Units - $45,000. Solving for Units gives approximately 2,797 units.

Kuldip's Factory Manufactures Toys That Sell for $29