If fixed costs are $1,334,000, the unit selling price is $240, and the unit variable costs are $109, what is the amount of sales required to realize an operating income of $221,000? a.5,558 units b.2,028 units c.12,239 units d.11,870 units

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 8EB: Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000...
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If fixed costs are $1,334,000, the unit selling price is $240, and the unit variable costs are $109, what is the amount of sales required to realize an operating income of $221,000?

a.5,558 units
b.2,028 units
c.12,239 units
d.11,870 units
Expert Solution
Step 1

Desired Sales = (Desired Income + Fixed Costs) / (Selling Price - Variable Costs)

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