Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows:
-How many units need to be sold to earn an annual net operating income equal to 10% of sales?

Question

Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows: 
-How many units need to be sold to earn an annual net operating income equal to 10% of sales?

Quizplus · Accepted Answer

To determine the number of units needed to achieve a net operating income equal to 10% of sales, you need to calculate the break-even point where net operating income is 10% of total sales revenue. The correct calculation leads to 53,200 units.

Hurst Co Manufacturers and Sells a Single Product