Question

use the following facts

sales price = $180 per unit

variable cost = $110 per unit

total fixed costs =$ 24,610

targeted net income = $56.240

how many units have to be sold to achieve targeted net income

1) 1,155

2) 963

3) 513

4) 629

Answer 1

Sales price	$180 per unit
Variable cost	$110 per unit
Therefore,
Contribution margin($180-$110)	$70 per unit
Number of units sold to achieve targeted net income = (Fixed costs + Targeted net Income)/Contribution margin per unit
		= ($24610+$56240)/$70
		= 1155 units
Therefore, option 1 is the correct answer.