Austin Manufacturing Had the Following Operating Data for the Year

question 82

Multiple Choice

Austin Manufacturing had the following operating data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Selling price per unit } & \$ 60 \text { per unit } \\\hline \text { Variable expense per unit } & \$ 22 \text { per unit } \\\hline \text { Fixed expenses } & \$ 504,000 \\\hline\end{array}$
Management plans to improve the quality of its only product by replacing a component that costs $3.50 with a higher-grade component that costs $5.50,and renting a packing machine for $18,000 a year.If the desired target operating profit is $288,000,how many units must the company sell?

• A) 19,300 units.
• B) 21,316 units.
• C) 22,500 units.
• D) 20,842 units.

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Definitions:

Dissociative Fugue

A psychological state in which a person loses awareness of their identity or other important autobiographical information and often engages in unexpected travel or wandering.

Cognitive

Pertaining to the mental processes of perception, memory, judgment, and reasoning.

Emotional

Related to feelings, moods, and affective states of a person, often influencing behavior and thought processes.

Physical

Relating to or concerning the body as opposed to the mind or spirit.