If the selling price per unit is $70,variable expenses per unit are $45,target operating income is $38,000,and total fixed expenses are $22,000,how many units must be sold to reach the target operating income?

Question

Quizplus · Accepted Answer

B)
Sales $70
Less Variable costs 45
= Contribution Margin $25
Fixed expenses $22,000 + Target Income $38,000 = $60,000 divided by Contribution Margin
$25 = 2,400 BE units

If the Selling Price Per Unit Is $70,variable Expenses Per