Fairfield Company management has budgeted the following amounts for its next fiscal year: selling price per unit $45.00 per unit variable expense per unit $25.00 per unit Total fixed expenses $832, 500   Fairfield Company’s goal for the month is to earn a target operating income of $285,000. How many units must be sold to achieve this goal?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Fairfield Company management has budgeted the following amounts for its next fiscal year:

selling price per unit $45.00 per unit
variable expense per unit $25.00 per unit
Total fixed expenses $832, 500

 

Fairfield Company’s goal for the month is to earn a target operating income of $285,000. How many units must be sold to achieve this goal?

 
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If Fairfield Company can reduce fixed expenses by $22,500, breakeven sales in units will

 

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