Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $315 per unit and has variable costs of $225 per unit. Next year XYZ Company wishes to earn an operating income that equals 90% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: O a. 2,364 ОБ.1,244 О с. 394 O d. 124 О е. 207

Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $315 per unit and has variable costs of $225 per unit. Next year XYZ Company wishes to earn an operating income that equals 90% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: O a. 2,364 ОБ.1,244 О с. 394 O d. 124 О е. 207

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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