Approximately how many units does the company need to sell


Ballard Company's variable costs are one-third of its sales. Its fixed costs are $5 per unit when 6,000 units are sold. Approximately how many units does the company need to sell to earn $10,000 in net income if the sales price per unit is $18?

The solution to work out is, 18x = 6x + 30,000 + 10,000. I understand where everything comes from except for the "6x". How is this described in the function?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Approximately how many units does the company need to sell
Reference No:- TGS02598519

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)