Given breakeven sales in units of 28,000 and a unit contribution margin of $4,how many units must be sold to reach a target operating income of $4,000?

Question

Quizplus · Accepted Answer

To reach a target operating income of $4,000, you need to sell enough units to cover both the breakeven point and the additional income. The additional units needed are $4,000 / $4 (unit contribution margin) = 1,000 units. Therefore, total units needed = 28,000 (breakeven) + 1,000 = 29,000 units.

Given Breakeven Sales in Units of 28,000 and a Unit