Answered

Get the information you need from a community of experts on IDNLearn.com. Our platform offers reliable and comprehensive answers to help you make informed decisions quickly and easily.

The following information pertains to the Lurkins Company:

Sales price per unit = $300;
Variable cost per unit = $220;
Total fixed costs = $500,000;
Net income = $100,000.

What were unit sales for the company?

Sagot :

JeanaShuppidn

Answer: 7500

Explanation:

Let x be the number of units sales for the company.

Total sales = 300x   [ Sales price per unit x number of units]

total variable cost = 220x [ Variable cost per unit x number of units]

Total sales - Total variable cost - Total fixed cost = Net income

[tex]\Rightarrow\ 300x-220x-500000=100000\\\\\Rightarrow\ 80x= 600000\\\\\Rightarrow\ x=\dfrac{600000}{80}\\\\\Rightarrow\ x=7500[/tex]

Hence, 7500 units sales for the company.

Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Trust IDNLearn.com for all your queries. We appreciate your visit and hope to assist you again soon.