Question

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

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?

Business   Accounting   
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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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