Acompany provided the following data: selling price per unit: 60 variable cost per unit 20 total fixed costs 400,000 how many units must be sole to earn a profit of $40,000?

The company needs to sell 9000 units in order to turn a profit of $40,000

Step-by-step explanation:

Hello, great question. These types are questions are the beginning steps for learning more advanced Algebraic Equations.

From the question we can get some important hints before creating our formula. First the Selling Price will be profit so it will be a positive number, but both unit cost and fixed costs are losses so they will be negative values in our formula. Also our formula will depend on the amount sold which we can represent as the variable x. With these hints we can create our formula as the following

Where:

Now that we have our formula the question asks how many units need to be sold in order to earn a profit of $40,000. We can calculate this by replacing the $40,000 with y and solving for x like so,

.... add 400,000 on both sides

... divide both sides by 40

The company needs to sell 9000 units in order to turn a profit of $40,000

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