East Company has the following budgeted cost and revenue data:
-To reach a target net operating income of $490,000,East Company must sell:

Question

East Company has the following budgeted cost and revenue data: 
-To reach a target net operating income of $490,000,East Company must sell:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $70 per unit - $30 per unit = $40 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)F1F1F1S1F1F1F10 Unit CM
= ($490,000 + $140,000)F1F1F1S1F1F1F10 $40 per unit =15,750 units

East Company Has the Following Budgeted Cost and Revenue Data