Exercise 22-7 (Part Level Submission)

Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for APs expected costs at production levels of 82,000, 92,000, and 102,000 units.

Variable costs
Manufacturing		$6 per unit
Administrative		$3 per unit
Selling		$2 per unit
Fixed costs
Manufacturing		$144,000
Administrative		$76,000

If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $328,500 before taxes?

Units to be sold