Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4. How many units must besold to meet a target net income of $50,000, assuming a tax rate of 20%?

The objective of this question is to calculate the number of units that need to be sold to achieve a…

Answered: Assume total fixed costs of $160,000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please provide the accurate solution to this financial accounting question using valid calculations.
Summersville Production Company had the following projected information for the current year: Selling price per unit $150 Variable cost per unit $90 Total fixed costs $300,000 What is the contribution margin ratio? a.0.600 b.2.500 c.0.400 d.1.667

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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%?