A product sells for $250 per unit, and its variable costs per unit are $181. The fixed costs are $430,000. If the firm wants to earn $25,400 pretax income, how many units must be sold

$6600

Explanation:

Given: Selling price= $250 per unit

          Variable cost= $181 per unit.

           Fixed cost= $430000.

           Expected Profit= $25400.

Let´s assume the number of units sold be "x".

Revenue (R) =

Cost of product (C)=

∴ Cost of product (C)=

Now, finding the number of unit sold.

Forming an equation for profit.

We know, Profit=

⇒  

Opening parenthesis.

⇒

⇒

Adding both side by 430000

⇒

Dividing both side by 69

⇒

∴

Hence, total number of units sold to earn $25400 is 6600 units.

answer; burned it;

answer/// there is an inverse relationship between price and quantity demanded;