Question

use the following facts sales price = $180 per unit variable cost = $110 per unit...

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


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Homework Answers

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.
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