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Stone corporation is a manufacturing company that makes

Question - Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of production are $25 per motor, and annual fixed costs of production are $800,000.

Required -

1. How many units of product must Stone make and sell to break even?

2. How many units of product must Stone make and sell to earn a $120,000 profit?

3. The marketing manager believes that sales would increase dramatically if the price were reduced to $40 per unit. How many units of product must Stone make and sell to earn a $160,000 profit, if the sales price is set at $40 per unit?

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