Given breakeven sales in units of 49,000 and a unit contribution margin of $3, how many units must be sold to reach a target operating income of $14,100?

Question

Quizplus · Accepted Answer

To reach a target operating income of $14,100 with a unit contribution margin of $3, the required number of units is calculated as follows: Breakeven units (49,000) + (Target operating income / Unit contribution margin) = 49,000 + ($14,100 / $3) = 49,000 + 4,700 = 53,700 units.

Given Breakeven Sales in Units of 49,000 and a Unit