of 15 I 49:46 k ces Required information The Foundational 15 (Algo) [LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 Foundational 5-10 (Algo) 10. How many units must be sold to achieve a target profit of $3,600? Note: Round intermediate calculations to 2 decimal places. Number of units
of 15 I 49:46 k ces Required information The Foundational 15 (Algo) [LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 Foundational 5-10 (Algo) 10. How many units must be sold to achieve a target profit of $3,600? Note: Round intermediate calculations to 2 decimal places. Number of units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![of 15
I
49:46
k
ces
Required information
The Foundational 15 (Algo) [LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7]
[The following information applies to the questions displayed below.]
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the
relevant range of production is 500 units to 1,500 units):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
$ 15,000
9,000
6,000
3,120
$ 2,880
Foundational 5-10 (Algo)
10. How many units must be sold to achieve a target profit of $3,600?
Note: Round intermediate calculations to 2 decimal places.
Number of units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9737efd-391f-457a-98f6-aa044a0527f1%2Fa1dbadfb-2d72-4bef-892d-8de92a68eea1%2Fopwr7nf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:of 15
I
49:46
k
ces
Required information
The Foundational 15 (Algo) [LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7]
[The following information applies to the questions displayed below.]
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the
relevant range of production is 500 units to 1,500 units):
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
$ 15,000
9,000
6,000
3,120
$ 2,880
Foundational 5-10 (Algo)
10. How many units must be sold to achieve a target profit of $3,600?
Note: Round intermediate calculations to 2 decimal places.
Number of units
Expert Solution
Step 1: Introduce to units sold to achieve target profit
Units sold to achieve target profit :— It is the number of units required to achieve target desired profit during the period. It is calculated by dividing sum of fixed cost and target before tax profit by contribution margin per unit. Contribution margin per unit is calculated by dividing contribution margin by units sold.
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