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ool vcU.edu-Cen..tion Service NOVA Login MindTap - Th..ol-Cengage Watch TV Onl.INITY Streanm Test 1 Material- ACCT-204 Take Test: BB quiz two- u Central Multiple Attempts This test allows multiple attempts. Force Completion This test can be saved and resumed later. ¥ Question Completion Status: Close Window Moving to another question will save this response. Question 13 of 15 > Question 13 1 points Save Answer Company\'s single product has a selling price of $15 per unit. Last year the company variable costs were $9 per unvit, fixed expenses were $90,000 and a net operating income was $30,000. A study by the sales manager discloses that a 15% in ease in the seling price would reduce unit sales by 10% How many units were sold last year? Your ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS. Moving to another question will save this response. Question 13 of 15 Close Window 4) 4 6 7 8 0.

Solution

Units sold last year is calculated as follows:-

(Units sold*Selling Price per unit)-(Units sold*variable cost per unit) - Fixed cost = Net operating income

[Units sold*($15-$9)] - $90,000 = $30,000

Units sold*$6 = $30,000+$90,000

Units sold = $120,000/$6 = 20,000 units

Thus the units sold last year was 20,000 units.