Acme Company produces and sells a single product. The selling price is $50 per unit, variable costs are $34 per unit, and total fixed costs are $162,000. How many units does Acme need to produce and sell to generate operating income equal to 14% of its total sales revenue? Enter unit sales, not sales revenue. Round to the nearest whole number and do not enter a decimal point (e.g., enter 89, not 89.2).
Acme Company produces and sells a single product. The selling price is $50 per unit, variable costs are $34 per unit, and total fixed costs are $162,000. How many units does Acme need to produce and sell to generate operating income equal to 14% of its total sales revenue? Enter unit sales, not sales revenue. Round to the nearest whole number and do not enter a decimal point (e.g., enter 89, not 89.2).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
Transcribed Image Text:Acme Company produces and sells a single product. The selling price is $50 per unit,
variable costs are $34 per unit, and total fixed costs are $162,000. How many units does
Acme need to produce and sell to generate operating income equal to 14% of its total
sales revenue? Enter unit sales, not sales revenue. Round to the nearest whole number and
do not enter a decimal point (e.g., enter 89, not 89.2).
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