Newell Company wishes to earn a pre-tax income of $30,000. Total fixed costs are $84,000, and the contribution margin per unit is $6.00. How many units must be sold to earn the targeted net income? a. 21,500 b. 17,000 c. 19,000 d. 14,000

Newell Company wishes to earn a pre-tax income of $30,000. Total fixed costs are $84,000, and the contribution margin per unit is $6.00. How many units must be sold to earn the targeted net income? a. 21,500 b. 17,000 c. 19,000 d. 14,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CE: Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at...

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Question

Newell company wishes to earn a pre tax income please solve this question

Newell Company wishes to earn a pre-tax income of
$30,000. Total fixed costs are $84,000, and the
contribution margin per unit is $6.00. How many units
must be sold to earn the targeted net income?
a. 21,500
b. 17,000
c. 19,000
d. 14,000

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