If targeted sales volume in units is 62,300, total fixed costs are $31,200, and contribution margin per unit is $1.20, then the targeted net income is _____.
A)$31,200
B)$43,560
C)$37,440
D)$74,760

Question

Quizplus · Accepted Answer

Targeted Net Income = (Targeted Sales Volume × Contribution Margin per Unit) - Total Fixed Costs

Targeted Net Income = (62,300 units × $1.20) - $31,200
Targeted Net Income = $74,760 - $31,200
Targeted Net Income = $43,560

Therefore, the answer is B) $43,560.

If Targeted Sales Volume in Units Is 62,300, Total Fixed