Chelonia Ltd Manufactures Small Robot Toys

question 37

Multiple Choice

Chelonia Ltd manufactures small robot toys. It plans to introduce a new product, Speedie the robot tortoise. The following activity cost information is available:
It is expected that each unit of Speedie will sell for $23. The direct material cost for unit is $10. Assuming a tax rate of 40%, how many units of Speedie must Chelonia Ltd produce and sell to make an after-tax profit of $12 000?
(For simplicity, assume that you can have partial moves and partial batches - that is, no need to round up the number of batches and the number of moves.)

• A) 1000 units
• B) 1818 units
• C) 4250 units
• D) 6250 units

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Fifteenth Century

The time period from the year 1401 to 1500, marking the later Middle Ages and leading into the Renaissance in Europe.

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