Kitchen help inc khi is a manufacturer of toaster ovens to

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Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control over operations, the president of KHI wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for KHI's expected costs at production levels of 86,000, 101,000, and 116,000 units.

Variable costs

    Manufacturing
$6 per unit
    Administrative
$4 per unit
    Selling
$2 per unit
Fixed costs

    Manufacturing
$150,000
    Administrative

$78,000

If KHI sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $301,500 before taxes?

Reference no: EM13574966

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