Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable costs amount to $23 per unit. Next year Locus Company wishes to earn a pretax income that equals 10 % of fixed costs. How many units must be sold to achieve this target income level?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable costs amount to $23 per unit. Next year Locus Company
wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?
Multiple Choice
) 6,325.
5,750.
8,249.
20,163.
575.
Transcribed Image Text:Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable costs amount to $23 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level? Multiple Choice ) 6,325. 5,750. 8,249. 20,163. 575.
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