Reference: 08-11
Hurst Co -How Many Units Need to Be Sold to Earn an Price

Reference: 08-11
Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: $$\begin{array} { | l | l | } \hline \text { Selling price } & \$ 40 \text { per unit } \\\hline \text { Variable manufacturing costs } & \$ 20 \text { per unit } \\\hline \text { Variable selling \& admin. expenses } & \$ 6 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 208,000 \text { per year } \\\hline \text { Fixed selling \& admin. expenses } & \$ 324,000 \text { per year } \\\hline\end{array}$$
-How many units need to be sold to earn an annual net income equal to 10% of sales

A) 47,500 units.
B) 44,000 units.
C) 54,500 units.
D) 53,200 units.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free