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Rose Corporation sells backpacks. Variable costs for this product are $30 per unit, and the sales price per unit is $50 per unit. Total fixed costs amount to $100,000. How many backpacks does Rose need to sell to achieve a desired profit of $60,000?

Respuesta :

Answer:

8,000

Explanation:

Profit = Total revenue - Total cost

Total revenue = price × quantity sold

Total cost = Fixed cost + variable cost

Variable cost = Cost x quantity sold

Profit = $60,000

Total revenue =  $50 × quantity sold (Q) = 50Q

Variable cost = $30 x quantity sold (Q) = $30Q

Fixed cost = $100,000

Total cost = $100,000 + $30Q

$60,000 = $50Q - ($100,000 + $30Q)

$60,000 = $20Q - $100,000

$160,000 = $20Q

Q = 8,000

I hope my answer helps you

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