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Baker Company's target operating income for Product Blue is $50,000. Fixed costs are $17,300 and variable costs are $12/unit. If Product Blue sells for $16/unit, how many units must be sold to achieve the target operating income? Question 8Answer a. 16,825 units b. 12,500 units C. 4,325 units d. 3,125 units

Baker Company's target operating income for Product Blue is $50,000. Fixed costs are $17,300 and variable costs are $12/unit. If Product Blue sells for $16/unit, how many units must be sold to achieve the target operating income? Question 8Answer a. 16,825 units b. 12,500 units C. 4,325 units d. 3,125 units

FINANCIAL ACCOUNTING
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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Baker Company's target operating income for Product Blue is $50,000. Fixed costs are $17,300 and variable costs are $12/unit. If Product Blue sells for $16/unit, how many units must be sold to achieve the target operating income? Question 8Answer a. 16,825 units b. 12,500 units C. 4,325 units d. 3,125 units
Transcribed Image Text:Baker Company's target operating income for Product Blue is $50,000. Fixed costs are $17,300 and variable costs are $12/unit. If Product Blue sells for $16/unit, how many units must be sold to achieve the target operating income? Question 8Answer a. 16,825 units b. 12,500 units C. 4,325 units d. 3,125 units
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