Sparkle Jewelry sells 800 units resulting in $85,000 of sales revenue, $32,000 of variable costs, and $26,000 of fixed costs.
The number of units that must be sold to achieve $41,000 of operating income is ________.

Question

Quizplus · Accepted Answer

($85,000 - $32,000) / 800 = $66.25
The number of units that must be sold to achieve $41,000 of operating income = ($26,000 + $41,000) / $66.25 = 1,012 units

Sparkle Jewelry Sells 800 Units Resulting in $85,000 of Sales