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Thomas Corporation Has a Targeted Operating Income of $500,000 for the Upcoming

Question 102

Essay

Thomas Corporation has a targeted operating income of $500,000 for the upcoming year. The selling price of their single product is $35.50 each, while the variable cost per unit is $10.50. Fixed costs total $270,000.
Calculate the following:
1. Contribution margin per unit
2. Break-even point in units
3. Units to be sold to earn the targeted operating income

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