Question
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 370 per unit
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.
| Sales price | $ | 370 | per unit |
| Variable costs | 135 | per unit | |
| Fixed costs | 564,000 | per month | |
Required:
a. What number must Derby sell per month to break even?
b. What number must Derby sell to make an operating profit of $305,500 for the month?
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Auditing A Complete Guide To Perform Internal And External Audits
Authors: Tim Power
1st Edition
1801490031, 978-1801490030
