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Magpie Inc. sells a single product for $30 per unit. Variable production costs are $10 per unit. Fixed overhead costs amount $54,000 per month. Variable
Magpie Inc. sells a single product for $30 per unit. Variable production costs are $10 per unit. Fixed overhead costs amount $54,000 per month. Variable selling costs are $8 per unit. Fixed selling costs are $6,000 per month. Last month, the company produced 10,000 units and sold 8,000 units.
How many units must the company sell to achieve a pre-tax profit of $200,000?
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