Sunland Company wants to sell a sufficient quantity of products to earn a profit of $300000. If the unit sales price is $12, unit variable cost is $8, and total fixed costs are $200000, how many units must be sold to earn income of $300000

$125,000

Explanation:

Data provided as below:-

Profit = $300,000

Total fixed cost = $200,000

Sales price = $12

Unit variable cost = $8

The computation of income is shown below:-

Units must be sold to earn net income of $300,000 = Profit + Total fixed costs  ÷ Sales price - Unit variable cost

= $300,000 + $200,000 ÷ $12 - $8

= $500,000 ÷ $4

= $125,000

So, for computing the net income we simply applied the above formula.

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