Answer :
To determine the number of units AP needs to sell in order to make a profit of $397,200 before taxes, we need additional information about the cost per unit and any other expenses associated with the sale of toaster ovens. Without this information, we cannot provide a specific answer.
To calculate the number of units needed to achieve a specific profit, we need to consider the following factors:
1. Cost per unit: The cost of producing each toaster oven, including manufacturing, overhead, and any other associated costs.
2. Other expenses: Any additional expenses related to the sale of toaster ovens, such as marketing costs, distribution costs, or commissions.
3. Sales price: The price at which AP plans to sell each toaster oven.
Once we have these details, we can calculate the contribution margin per unit, which is the difference between the sales price and the variable costs per unit. By dividing the desired profit by the contribution margin per unit, we can determine the number of units AP needs to sell to achieve the target profit.
Without information on the cost per unit, other expenses, and the sales price, it is not possible to calculate the exact number of units AP needs to sell to make a profit of $397,200 before taxes. The calculation requires a comprehensive understanding of the costs and revenues associated with the sale of toaster ovens.
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