Question

How many units to sell if the company wants a profit before taxes of $20,000, total fixed costs $30,000, selling price $150, variable unit cost $50.

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Answer to a math question How many units to sell if the company wants a profit before taxes of $20,000, total fixed costs $30,000, selling price $150, variable unit cost $50.

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Cristian
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111 Answers
1. Substitute known values into the profit equation:

20000 = (150 - 50) \cdot Q - 30000

2. Simplify inside the parenthesis:

20000 = 100Q - 30000

3. Add 30000 to both sides:

20000 + 30000 = 100Q

50000 = 100Q

4. Divide both sides by 100:

\frac{50000}{100} = Q

5. Simplify the division:

Q = 500

Answer: Q = 500

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