Question
ToyCorp. is analyzing producing and selling a revolutionary simulation computer gaming system. The company estimates its variable cost per unit will be $600 and each
ToyCorp. is analyzing producing and selling a revolutionary simulation computer gaming system. The company estimates its variable cost per unit will be $600 and each system's sales price would be set at 150% of its variable cost per unit. Further assume that the companys fixed costs are estimated at $330,000, interest expense will be $30,000, and that the companys investors will only put up the funds if the project is likely to have an operating income of at least $75,000. What sales volume would be required in order to meet this profit goal?
the answer is 1350, will you show the work?
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