Budget data for the Bidwell Company are as follows:
-The number of units Bidwell would have to sell to earn a net operating income of $150,000 is:

Question

Quizplus · Accepted Answer

Unit CM = Contribution margin F1F1F1S1F1F1F10 Unit sales
= ($1,000,000 - $700,000)F1F1F1S1F1F1F10 100,000 units
= $300,000 F1F1F1S1F1F1F10 100,000 units = $3 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)F1F1F1S1F1F1F10 Unit CM
= ($150,000 + $210,000)F1F1F1S1F1F1F10 $3 per unit =120,000 units

Budget Data for the Bidwell Company Are as Follows