Rst company produces a product that has a variable cost of $6 per unit. the company's fixed costs are $30,000. the product sells for $10 per unit. rst desires to earn a profit of $20,000. the sales level in units to achieve the desire profit is

The sales level in units to achieve the desire profit is "12,500".

Explanation:

variable cost = $6 per unit

fixed costs = $30,000

product sells = $10 per unit

profit = $20,000

we will calculate the sales level in units to achieve the desire profit by adding the fixed cost and profit and then dividing it by the subtraction of fixed cost from products sale per unit price;

= ($30,000 + $20,000) / ($10-$6)

= 12,500