solution

The Abner Corporation, a retail seller of television sets, wants to determine

how many television sets it must sell to earn a profit of $10,000 per month.

The price of each television set is $300, and the average variable cost is $100.

a. What is the required sales volume if the Abner Corporation’s monthly

fixed costs are $5,000 per month? b. If the firm sells each television set at a price of $350 rather than $300, what is the required sales volume?

c. If the price is $350, and if average variable cost is $85 rather than $100,

what is the required sales volume?