Toward the end of the year, the president of Company Y looks at the preliminary numbers for
Question:
Toward the end of the year, the president of Company Y looks at the preliminary numbers for operating profit and doesn’t like what he sees. He’s “promised” the board of directors that operating profit for the year will come in at $4,850,000. In fact, his bonus depends on hitting that operating profit target. There is still time before the end of the year to crank up production output for the year. Therefore, he orders that production output be stepped up. The president asks you to determine what the production output level for the year would have to be in order to report $4,850,000 operating profit for the year. Of course, you have ethical qualms about doing this, but you need the job. So, you reluctantly decide to do the calculation. Determine the production output level that would yield $4,850,000 operating profit for the year.
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