Question

How many single units (in thousands) should be produced for the revenue to equal $440,000?

A) 20 units
B) 14 units
C) 12 units
D) 8 units

Answer 1

To produce $440,000 in revenue, approximately 12,000 single units need to be produced.Thus the correct option is c.

Step-by-step explanation:

To determine the number of single units needed to generate a revenue of $440,000, we can use the formula for revenue: Revenue = Price per unit x Number of units sold.

Let's assume that the price per unit is $37.50.

Revenue = Price per unit x Number of units sold

$440,000 = $37.50 x Number of units sold

Number of units sold = $440,000 / $37.50

Number of units sold ≈ 12,000 (rounded to the nearest thousand)

Therefore, to generate a revenue of $440,000, approximately 12,000 single units need to be produced and sold at a price of $37.50 each. This calculation assumes that the price per unit remains constant for all units sold. If the price per unit varies based on factors such as quantity discounts or promotional offers, the calculation would need to be adjusted accordingly. Thus the correct option is c.