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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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