Answered: A firm wants to earn an operating…

A firm wants to earn an operating income of $225,000. Fixed costs are $600,000, and the unit contribution margin is $30. How many units must be sold to achieve this goal?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Question

How many units must be sold to achieve this goal?

A firm wants to earn an operating income of $225,000. Fixed costs
are $600,000, and the unit contribution margin is $30.
How many units must be sold to achieve this goal?

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