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15 October, 08:31

A product sells for $200 per unit, and its variable costs per unit are $130. the fixed costs are $420,000. if the firm wants to earn $35,000 pretax income, how many units must be sold?

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  1. 15 October, 08:37
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    6500 units

    As he should sell 6000 units to cover his fixed cost (420,000/70)

    And to gain 35,000$ he should sell another 500 (35,000/70)
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