Use the following information to determine your answers. The item sells for $100/unit, It has fixed costs of $2,000,000. They estimate they can sell...

Use the following information to determine your answers. The item sells for $100/unit, It has fixed costs of $2,000,000. They estimate they can sell 125,000 of these annually. The average variable cost is $80.

Using the information given above, determine the minimum level of sales increase needed to pay for a plant expansion costing $100,000.

Target Sales VolumeIn cost-volume-analysis, the target sales is the total number of sales units in which the firm needsto sale in order to reach a certain target of profits. Before a firm...