Elements Utensils Has the Following Cost Estimates: Variable Cost Per

Multiple Choice

Elements Utensils has the following cost estimates: variable cost per unit is $9, total fixed costs are $58 000 and the projected sales price is $13 each. The new accountant suggests that fixed costs can be reduced by $8000. If so, how many units must be sold to produce a profit of $130 000?

A) 13 846
B) 32 000
C) 45 000
D) 47 000