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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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