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The following information is for a product manufactured and sold by Rivera Corporation: Sales...

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Accounting

The following information is for a product manufactured and sold by Rivera Corporation:

  • Sales price per unit, $30
  • Variable cost per unit, $20
  • Total fixed costs, $200,000
  • Last year, Rivera earned a profit of $60,000

Required: 1) How many units did Rivera sell last year? 2) Rivera's managers are considering decreasing the sales price to $28 in an effort to increase market share. Also, the company wants a profit of $80,000. How many units would it have to sell at the lower selling price to achieve this target?

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