A company wishes to earn a pretax income equal to 35% of total fixed costs.Its product sells for $50.75 per unit.Total fixed costs equal $156,800 and variable costs per unit are $32.50.How many units must this company sell to meet its goal? (Round answer to complete units.)

Question

Quizplus · Accepted Answer

Desired pretax income = 35% x $156,800 = $54,880
Units required = ($156,800 + $54,880)/($50.75 - $32.50) = 11,599 units

A Company Wishes to Earn a Pretax Income Equal to 35