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Question - One product line of Anita's Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive - The Speedster.
The parts list for each unit is:
1 standard USB plug
1 USB mass storage controller
1 NAND flash memory chip
1 crystal oscillator
1 cover
In the table are the current variable costs per Speedster. The fixed costs associated with the manufacture and sales of this product are $480,000 per year and Anita's uses a marginal tax-rate of 20% for planning purposes.
Speedster
Sales Price (per unit) $25.00
Material cost (per unit) $6.00
Direct labor (per unit) $4.00
Variable OH (per unit) $7.00
Required - What is the number of Speedsters required to earn a profit of $240,000 per year after taxes?
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