Lamar Has the Following Data -
How Many Units Must Lamar Produce and Sell in
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question 68

Multiple Choice

Lamar has the following data:
$$\begin{array} { l l } \text { Selling Price } & \$ \quad40 \\\text { Variable manufacturing cost } & \$\quad 22 \\\text { Fixed manufacturing cost } & \$ 150,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 6 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}$$
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How many units must Lamar produce and sell in order to achieve a profit of $30,000 per month?

• A) 10,000 units.
• B) 8,824 units.
• C) 25,000 units.
• D) 15,000 units.

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