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Co A produced and sold 80,000 units during January. It incurred the following costs.
Variable cost per unit = $120.00
Total fixed cost = $360,000
Each unit was sold at a price of $180
HOW MANY UNITS SHOULD BE PRODUCED AND SOLD TO EARN A PROFIT OF $1.2MILLION?
1. 26,000
2. 60,000
3. 6,000
4. 80,000
Recently, the company is considering increasing its advertising by $50,000 in order to sell more car parts. How many additional parts must the company sell in order to justify the increased advertising costs?
At the time of delivery the index was 132.0. Compute the final contract price?
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