Question

Our company makes and sells bicycles. We never hold inventories. Last year, our net operating income...

Our company makes and sells bicycles. We never hold inventories. Last year, our net operating income (NOI) was $800,000. The
following additional information is available about last year:

Amount
Units Sold 36,000
Unit Selling Price $ 135
Product Cost per Unit (under GAAP) $ 76
Fixed Manufacturing Overhead $ 1,440,000
Variable Selling and Administrative Cost per $ 17   

Approximately how many units would we need to sell to earn the NOI of $1,600,000?

A. 45,756
B. 72,000
C. 37,073
D. 72,381
E. None of the above

Business   Accounting   
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