Subject: URound up to the next whole numberQuestion 8 of 9b. If sales dropped to 30.00% of the maximum capacity and the selling price reducedby $5.00 per unit, what would be the net income?$0.00Express the answer with a positive sign for profit or negative sign for loss, rounded to the nearest centC Question 8 of 9A company manufactures a product that currently sells for $37. The fixed costs are$105,000 per year and the variable costs are $28. The capacity of the productionfacility is 55,000 units per year.a. How many units must be produced to attain a net income of $60,000 per year?Round up to the next whole number↑✩

Part A ) Profit = Sales - Variable Cost - Fixed Cost 60000 = ( Units * 37 ) - ( Units * 28 ) -…

Answered: A company manufactures a product that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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A company manufactures a product that currently sells for $37. The fixed costs are $105,000 per year and the variable costs are $28. The capacity of the production facility is 55,000 units per year. a. How many units must be produced to attain a net income of $60,000 per year?