The income required to be earned is $40000. Let the number of units to be sold for that be N.

The variable costs for each unit are $105 and the fixed costs per unit are 720,000/N. The tax that is paid on the profit is 25%.

Each product is sold...

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The income required to be earned is $40000. Let the number of units to be sold for that be N.

The variable costs for each unit are $105 and the fixed costs per unit are 720,000/N. The tax that is paid on the profit is 25%.

Each product is sold for $150.

So the net profit made on selling N units is (150*N - 105*N - 720000)*(1 - 25%)

This should be equal to $40000

=> (150*N - 105*N - 720000)*(1 - 25%)= $40,000

=> (45N - 720000)*(1 - 25%)= $40,000

=> (45N - 720000)*(0.75)= $40,000

=> (45N - 720000)= $40,000/0.75

=> 45N = (40,000/0.75 + 720000)

=> N = (40,000/0.75 + 720000)/45

In terms of dollars, as each product costs $150, the required sales are $150*N

=> (40,000/0.75 + 720000)*150/45

=> 2577777.78

**The required sales are $2,577,777.78 to earn a profit of $40000**