The following information is for Albion Corporation: $\begin{array}{ll}
\text { Total fixed costs } & \$ 313,500 \
\text { Variable costs per unit } & \$ 99 \
\text { Selling price per unit } & \$ 154
\end{array}$ If management has a targeted net income of $46,200 (ignore income taxes), then the number of units that must be sold is:
A) 6,540 units
B) 5,700 units
C) 2,336 units
D) 2,036 units

Question

Quizplus · Accepted Answer

To find the number of units needed to achieve the targeted net income, use the formula: $(\text{Fixed Costs} + \text{Target Net Income}) / (\text{Selling Price per Unit} - \text{Variable Cost per Unit})$. Plugging in the values: $(313,500 + 46,200) / (154 - 99) = 6,540$ units.

The Following Information Is for Albion Corporation If Management Has a Targeted Net Income of $46,200 (Ignore