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Nashville Enterprises wishes to earn a pre- tax income of $40,000. Total fixed costs are $96,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted net income? a. 18,500 b. 16,000 c. 17,000 d. 14,500

Nashville Enterprises wishes to earn a pre- tax income of $40,000. Total fixed costs are $96,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted net income? a. 18,500 b. 16,000 c. 17,000 d. 14,500

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13E
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How many units must be sold?

Nashville Enterprises wishes to earn a pre- tax income of $40,000. Total fixed costs are $96,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted net income? a. 18,500 b. 16,000 c. 17,000 d. 14,500
Transcribed Image Text:Nashville Enterprises wishes to earn a pre- tax income of $40,000. Total fixed costs are $96,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted net income? a. 18,500 b. 16,000 c. 17,000 d. 14,500
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