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Austin Manufacturing had the following operating data for the year just ended. Selling price per unit $60 per unit Variable expense per unit $22 per
Austin Manufacturing had the following operating data for the year just ended. Selling price per unit $60 per unit Variable expense per unit $22 per unit Fixed expense $504,000 Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50 and (2) renting a packing machine for $18,000 a year. If the desired target profit is $288,000, how many units must the company sell? Group of answer choices 19,300 units. 20,842 units. 21,316 units. 22,500 units.
Austin Manufacturing had the following operating data for the year just ended.
Selling price per unit $60 per unit
Variable expense per unit $22 per unit
Fixed expense $504,000
Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50 and (2) renting a packing machine for $18,000 a year. If the desired target profit is $288,000, how many units must the company sell?
Group of answer choices
19,300 units.
20,842 units.
21,316 units.
22,500 units.
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