Question

A product sells for $200 per unit, and its variable costs per unit are $130. the fixed costs are $420,000. if the firm wants to earn $35,000 pretax income, how many units must be sold?

Answer 1

6500 units
As he should sell 6000 units to cover his fixed cost (420,000/70)
And to gain 35,000$ he should sell another 500 (35,000/70)