Assume the following facts:
$\begin{array}{ll}
\text { Sales price }&\$180 \text { per unit }\
\text { Variable cost }&\$100\text { per unit }\
\text { Total fixed costs } & \$ 39,600 \
\text { Targeted net income } & \$ 52,800
\end{array}$
How many units must be sold to achieve the targeted net income?
A) 513
B) 629
C) 963
D) 1,155

Question

Quizplus · Accepted Answer

To find the number of units needed to achieve the targeted net income, use the formula: $(\text{Fixed Costs} + \text{Targeted Net Income}) / (\text{Sales Price per Unit} - \text{Variable Cost per Unit})$. Plugging in the values: $(39,600 + 52,800) / (180 - 100) = 1,155$ units.

Assume the Following Facts How Many Units Must Be Sold to Achieve the Targeted