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A new product marketing push is being contemplated by Vanek Co. Fixed costs to be incurred are $700,000 for production of 80,000 units or less
A new product marketing push is being contemplated by Vanek Co.
Fixed costs to be incurred are $700,000 for production of 80,000 units or less and $1,000,000 for more than 80,000 units.
The contribution margin ratio is 30% for the first 80,000 units, and it increases to 40% for units in excess of 80,000.
The product is expected to sell for $25 per unit.
How many units must Vanek Co. sell to earn a profit of $250,000?
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