Given break-even 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 with a unit contribution margin of $4, you need to sell an additional 1,000 units beyond the break-even point of 28,000 units (4,000 / 4 = 1,000). Therefore, to achieve the target operating income, a total of 29,000 units must be sold (28,000 + 1,000).

Given Break-Even Sales in Units of 28,000 and a Unit