Author Question: Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per ... (Read 127 times)

emoedee · **on:** Feb 5, 2023

Question 1

Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target operating income of $50,000?
◦ 5,000 units
◦ 40,000 units
◦ 25,000 units
◦ 52,500 units

Question 2

Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target net income of $50,000, assuming a tax rate of 20%?
◦ 50,000
◦ 52,500
◦ 55,625
◦ 35,000

Htimsrs · **Reply #1 on:** Feb 5, 2023

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