Question
Alfa Co. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for
Alfa Co. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit?
| A. | $75,000 | |
| B. | $50,000 | |
| C. | $83,333 | |
| D. | $125,000 |
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Accounting Information Systems The Crossroads of Accounting & IT
Authors: Donna Kay, Ali Ovlia
2nd Edition
132991322, 978-0132991322
