Derby Phones is considering the introduction of a newmodel of headphones with the following price and cost characteristics. Sale price----$285 per unit, variable costs--140 per unit, and fixed costs 348,000 per month. What number must Derby sell to make an operating profit of $159,500 for the month

Respuesta :

The units of headphones that  must be sold to have an operating profit of $159,500 is 3497.

What is the units sold that would yield an operating profit of $159,500?

Operating profit is total profit that is earned from the daily business operations of a business. Operating profit is total revenue less fixed cost and variable cost.

How many units must be sold to have an operating profit of $159,500 = operating profit + fixed cost / (selling price - variable cost)

(159,000 + $348,000) / (285 - 140) = 3497

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