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Casey Corporation is a manufacturing company that makes small electric motors it sells for $47 per unit. The variable costs of production are $27 per

Casey Corporation is a manufacturing company that makes small electric motors it sells for $47 per unit. The variable costs of production are $27 per motor, and annual fixed costs of production are $340,000.

Required:
a.

How many units of product must Casey make and sell to break even?

b.

How many units of product must Casey make and sell to earn a $80,000 profit?

c.

The marketing manager believes that sales would increase dramatically if the price were reduced to $42 per unit. How many units of product must Casey make and sell to earn a $80,000 profit, if the sales price is set at $42 per unit?

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