Use the following information to answer this and the following few questions:

Trendy Company manufacturers and markets one product with the following related information:

• Sales price is $30 per unit.
• Variable cost is $21 per unit.
• Fixed cost is $90,000 per month.
• Sales volume for June is 12,000 units.

How many units need to be sold to achieve a profit of $72,000?

Group of answer choices

16,000

18,000

24,000

20,000

Flag this Question

Question 18

2pts

Calculate Trendy's break-even point in units.

Group of answer choices

16,667

8,000

12,000

10,000

Flag this Question

Question 19

3pts

Calculate Trendy's break-even point in Totat Revenues:

Group of answer choices

350,000

300,000

90,000

360,000

Flag this Question

Question 20

3pts

Now assume Trendy acquires a new automated piece of equipment that will reduce variable costs to $15 per unit and fixed costs would increase to $100,000 per month.

Calculate Trendy's operating income at 12,000 units with this new piece of equipment.

Group of answer choices

80,000

100,000

18,000

180,000

Flag this Question

Question 21

3pts

Finally, calculate Trendy's new break-even in units with the new piece of equipment.

Group of answer choices

8,000

6,667

10,000

5,000