Given breakeven sales in units of 56,000 and a unit contribution margin of $6,how many units must be sold to reach a target operating income of $24,000?

Question

Quizplus · Accepted Answer

The target operating income is $24,000. The unit contribution margin is $6. So, the number of units that must be sold to reach the target operating income is $24,000/$6 = 4,000 units. The breakeven sales in units is 56,000 units. So, the number of units that must be sold to reach the target operating income is 56,000 + 4,000 = 60,000 units.

Given Breakeven Sales in Units of 56,000 and a Unit