Question

A firm has a product that sells for $35 with a COGS of $12.50. Fixed

costs are $250,000 and the firm wants to achieve a profit of 25%. How

many units will they need to sell?

Answer #1

let the number of units to be sold be x | |||||

(35-12.5)*x - 250,000 = 35x*25% | |||||

22.5x -8.75x = 250,000 | |||||

13.75x = 250,000 | |||||

x = 250,000/13.75 | |||||

18182 | units | ||||

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