MBA560 Financial and Managerial Accounting: Module 6 Test Problem 1 Rivera Corporation

MBA560 Financial and Managerial Accounting Module 6 Test Problem 1. 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?