A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to answer Problem 2-54 through 2-56. Select the closest answer.2-54 How many units per year must be sold for the company to breakeven?a.4,800b.3,000c.8,000d.6, 667e.4,0002-55 If 10,000 units per year are sold, what is the annual profit?a.$280,000b.$50,000c.$150,00 0d.−$50,000e.$30,0002-56 If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year?a.12,000b.10,000c.16,000d.18,0 00e.5,143

8000

$30,000

d.18,000

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

Fixed costs = $100,000  + $20,000 = $120,000

Variable costs are costs that vary with production

variable costs per unit = $15 + $10 = $25

Price = $40

Break even quantity = $120,000 / $40 - $25 = 8000

Profit = total revenue - total cost

Total revenue = price x quantity sold

$40 x 10,000 = $400,000

Total cost = fixed cost + total variable cost

total variable cost = variable cost per unit x quantity sold

$25 x 10,000 = $250,000

total cost = $250,000 + $120,000 = $370,000

Profit = $400,000 - $370,000 = $30,000

C.

Price = $35

quantity = x

profit = $60,000

$60,000 = $35x - ($120,000 + $25x)

solving for x

$180,000 = $10x

x = 18,000

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;