A product sells for $300 per unit, and its variable costs per unit are $232. Total fixed costs are $440,000. If the firm wants to earn $15,600 pretax income, how many units must be sold

To obtain a profit of $15,600, the company needs to sell 6,700 units.

Explanation:

Giving the following information:

A product sells for $300 per unit, and its variable costs per unit are $232. Total fixed costs are $440,000

Desired profit= $15,600

To calculate the number of units required, we need to use the break-even point formula. We need to include the desired profit in the formula:

Break-even point= (fixed costs + desired profit) / contribution margin

Break-even point= ( 440,000 + 15,600) / (300 - 232)

Break-even point= 6,700 units

To obtain a profit of $15,600, the company needs to sell 6,700 units.

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.