Question
Walton Corporation is a manufacturing company that makes small electric motors it sells for $47 per unit. The variable costs of production are $27 per
Walton Corporation is a manufacturing company that makes small electric motors it sells for $47 per unit. The variable costs of production are $27 per motor, and annual fixed costs of production are $480,000.
Required
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How many units of product must Walton make and sell to break even?
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How many units of product must Walton make and sell to earn a $80,000 profit?
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The marketing manager believes that sales would increase dramatically if the price were reduced to $43 per unit. How many units of product must Walton make and sell to earn a $104,000 profit, if the sales price is set at $43 per unit?
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