The Following Information Is for a Product Manufactured and Sold

question 94

Essay

The following information is for a product manufactured and sold by Richards Corporation:
Sales price per unit,$70
Variable cost per unit,$40
Total fixed costs,$600,000
Last year,Richards earned a profit of $30,000.
Required:
1)How many units did Richards sell last year?
2)Richards' managers are considering decreasing the sales price to $60 in an effort to increase market share.Also,the company wants a profit of $60,000.How many units would it have to sell at the lower selling price to achieve this target?

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Definitions:

Default

In technology, a default refers to a pre-set option or configuration adopted by a program or device when no alternative is specified by the user.

Meeting Organizer

The person responsible for scheduling, setting up, and often leading a meeting, typically controlling invitations and agenda.

Recurring Activity

An event or task that repeats at regular intervals, often found in calendars and project management tools.

Regular Interval

Consistent, evenly spaced periods of time or points in a sequence or process.