For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units b. 6,000 units O c. 20,000 units O d. 6,000 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
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O e. Sales - variable expenses + profit = fixed expenses
For XYZ Company, how many units of their product would have to be sold to yield a target operating
income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total
fixed costs are $90,000, and the unit selling price is $65?
a.
14,000 units
Ob. 6,000 units
Oc. 20,000 units
O d. 6,000 units
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Transcribed Image Text:O e. Sales - variable expenses + profit = fixed expenses For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units Ob. 6,000 units Oc. 20,000 units O d. 6,000 units OUS PAGE NEXT PAGE 16
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