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Olivo Company: use equation method to calculate sales in uni

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Olivo Company manufactures products that it sells for $33 each. Variable costs are $22 per unit, and annual fixed costs are $454,900.

Use the EQUATION METHOD to calculate the sales in units that will result in a $28,000 profit.

(selling price/unit) x (# of units) = (variable rate/unit) x (# of units) + total fixed costs + desired level of profit.

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Solution Summary

The expert uses equation methods to calculate sales for Olivo Company.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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