Garcia Manufacturing wishes to a pre-tax income of $45,000. Total fixed costs are $120,000, and the contribution margin per unit is $7.50. How many units must be sold to earn the targeted net income? a. 22,000 b. 16,000 c. 24,000 d. 18,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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Garcia Manufacturing wishes to
a pre-tax
income of $45,000. Total fixed costs are $120,000, and
the contribution margin per unit is $7.50. How many
units must be sold to earn the targeted net income?
a. 22,000
b. 16,000
c. 24,000
d. 18,000
Transcribed Image Text:Garcia Manufacturing wishes to a pre-tax income of $45,000. Total fixed costs are $120,000, and the contribution margin per unit is $7.50. How many units must be sold to earn the targeted net income? a. 22,000 b. 16,000 c. 24,000 d. 18,000
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