Presented below is Oxford Ltd.'s partial income statement for 20x5: Item Amount Sales (39,800 units) $865,000 Variable costs (376,000) Contribution Margin Fixed Expenses |(194,000) Operating Income Income tax expense 40% of net income Net Income How many units must Oxford Ltd. sell in order to generate net income equal to $291,000?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Presented below is Oxford Ltd.'s partial income statement for 20x5:**

| **Item**                 | **Amount**           |
|--------------------------|----------------------|
| Sales (39,800 units)     | $865,000             |
| Variable costs           | $(376,000)           |
| Contribution Margin      |                      |
| Fixed Expenses           | $(194,000)           |
| Operating Income         |                      |
| Income tax expense       | 40% of net income    |
| Net Income               |                      |

**Question:**

How many **units** must Oxford Ltd. sell in order to generate net income equal to $291,000?
Transcribed Image Text:**Presented below is Oxford Ltd.'s partial income statement for 20x5:** | **Item** | **Amount** | |--------------------------|----------------------| | Sales (39,800 units) | $865,000 | | Variable costs | $(376,000) | | Contribution Margin | | | Fixed Expenses | $(194,000) | | Operating Income | | | Income tax expense | 40% of net income | | Net Income | | **Question:** How many **units** must Oxford Ltd. sell in order to generate net income equal to $291,000?
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