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If AP sells the toaster ovens for $17 each, how many units will it have to sell

ID: 2451489 • Letter: I

Question

If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $236,200 before taxes?

If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $236,200 before taxes?

Units to be sold

Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 86,000, 99,000, and 112,000 units Variable costs Manufacturing Administrative Selling $7 per unit $4 per unit $2 per unit Fixed costs Manufacturing Administrative $139,000 $72,000

Explanation / Answer

If AP sells the toaster ovens for $17 each, how many units will it have to sell