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Stone Corporation is a manufacturing company that makes small electric motors it sells for $51 per unit. The variable costs of production are $36
Stone Corporation is a manufacturing company that makes small electric motors it sells for $51 per unit. The variable costs of production are $36 per motor, and annual fixed costs of production are $240,000. Required a. How many units of product must Stone make and sell to break even? b. How many units of product must Stone make and sell to earn a $75,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced to $45 per unit. How many units of product must Stone make and sell to earn a $97,500 profit, if the sales price is set at $45 per unit? a. Sales volume 16,000 units b. Sales volume 21,000 units c. Sales volume units
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