Calculate the number of units that must be sold in order to realize an operating income of $150,000 when fixed costs are $480,000 and the unit contribution margin is $25. a. 25,200 units b. 26,400 units c. 27,000 units d. 25,600 units

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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The unit contribution margin?

Calculate the number of units that must
be sold in order to realize an operating
income of $150,000 when fixed costs are
$480,000 and the unit contribution
margin is $25.
a. 25,200 units
b. 26,400 units
c. 27,000 units
d. 25,600 units
Transcribed Image Text:Calculate the number of units that must be sold in order to realize an operating income of $150,000 when fixed costs are $480,000 and the unit contribution margin is $25. a. 25,200 units b. 26,400 units c. 27,000 units d. 25,600 units
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