How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)?

$897,000

a. Breed’s unit selling price that will yield a profit of $543,000, given sales of 160,000 units.

b. Breed’s dollar sales that will yield a projected 25 percent profit on sales, assuming variable costs per unit are 51 percent of the selling price per unit and fixed costs are $494,400.

c. Management believes that a selling price of $7.20 per unit is reasonable given current market conditions.

 

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