Question

A company desires to sell a sufficient quantity of products to earn a profit of $240000. If the unit sales price is $32, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $240000?

52000 units

86000 units

47500 units

37000 units -------------------------

Sheffield Corp. has fixed costs of $550000 and variable costs are 20% of sales. How much will Sheffield report as sales when its net income equals $50000?

$3000000

$737500

$120000

$750000

or Bramble Corp., sales is $4000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $300000?

$11111111

$2500000

$833333

$3333333

Answer 1