# Assume that we are manufacturing a product, and assume that the sales price per unit is \$70, the variable cost is \$20 per unit, and fixed cost is

Assume that we are manufacturing a product, and assume that the sales price per unit is \$70, the variable cost is \$20 per unit, and fixed cost is.

Assume that we are manufacturing a product, and assume that the sales price per unit is \$70, the variable cost is \$20 per unit, and fixed cost is \$85,000; a) how many units would we need to sell to break even? b) How many units would we need to sell to earn a profit of \$120,000? c) How many units do we need to sell to double that profit to \$240,000? D) Why didn’t the number of units double from Part B to Part C?

Sale PriceVariable CostFixed Cost 702085000 Contribution per unit == 70 – 2050 Break Even (in units) === Fixed Cost / Contribution85000 / 501700 No. of units required to earn profit of…

Assume that we are manufacturing a product, and assume that the sales price per unit is \$70, the variable cost is \$20 per unit, and fixed cost is 