The following information is available for Kinsner 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,then the number of units that must be sold is ________.
A) 2,036 units
B) 2,336 units
C) 5,700 units
D) 6,540 units

Question

Quizplus · Accepted Answer

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

The Following Information Is Available for Kinsner Corporation If Management Has a Targeted Net Income of $46,200,then the Total