To find out how many units must be sold to achieve a profit of $400,000, we need to set up the profit equation.
Let's denote the number of units sold as $x$.
The total cost can be calculated by taking the sum of the fixed costs (150,000) and variable costs per unit (90) multiplied by the number of units sold ($x$):
Total cost = Fixed costs + (Variable cost per unit * Number of units sold)
= 150,000 + (90 * $x)
The total revenue can be calculated by multiplying the selling price per unit (1,200) by the number of units sold ($x$): Total revenue = Selling price per unit * Number of units sold = 1,200 * $x
The profit can be calculated by subtracting the total cost from the total revenue:
Profit = Total revenue - Total cost
Now we can set up the equation to find the number of units sold:
1,200x - (150,000 + 90x) = 400,000 To solve this equation, we can first simplify it: 1,200x - 150,000 - 90x = 400,000
Combining like terms:
1,200x - 90x - 150,000 = 400,000 1,110x - 150,000 = 400,000
Next, we can isolate the variable on one side:
1,110x = 400,000 + 150,000 1,110x = 550,000
Dividing both sides by $$1,110:
x = \frac{550,000}{1,110}
Simplifying:
x \approx 494.59
Therefore, approximately 494.59 units must be sold to achieve a profit of $400,000.
Answer: \boxed{494.59 \text{ units}}