Calculate the number of units that must be sold in order to realize an operating income of $225,000 when fixed costs are $675,000 and unit contribution margin is $25. a. 27,000 units b. 36,000 units c. 40,000 units d. 34,500 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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Calculate the number of units that must be sold in order to realize an
operating income of $225,000 when fixed costs are $675,000 and unit
contribution margin is $25.
a. 27,000 units
b. 36,000 units
c. 40,000 units
d. 34,500 units
Transcribed Image Text:Calculate the number of units that must be sold in order to realize an operating income of $225,000 when fixed costs are $675,000 and unit contribution margin is $25. a. 27,000 units b. 36,000 units c. 40,000 units d. 34,500 units
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