Answer:
13,000 units
Step-by-step explanation:
Given that
The monthly fixed cost is $60,000
The production cost is $10 per unit
And, the selling cost is $15 per unit
The minimum monthly profit is $5,000
We need to find out the number of units to be produced to earn a profit
So
Here we have to determine the break even points in units
We know that
Break even point in units is
= (Fixed cost + target profit) ÷ (contribution margin per unit)
= ($60,000 + $5,000) ÷ ($15 - $10)
= $65,000 ÷ $5
= 13,000 units
