Business, 21.12.2019 00:31 jasonoliva13

Spencer tools would like to offer a special product to its best customers. however, the firm wants to limit its maximum potential loss on this product to the firm's initial investment in the project. the fixed costs are estimated at $32,000, the depreciation expense is $9,700, and the contribution margin per unit is $9.85. what is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level?

a. 3,220 units
b. 3,249 units
c. 2,815 units
d. 4,233 units
e. 4,658 units

Answers: 3

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Spencer tools would like to offer a special product to its best customers. however, the firm wants t...