How many units must be sold Sunbeam Corp. wants to earn a pre-tax income of$50,000. The company has total fixed costs of$120,000, and the contribution margin per unit is$8.00.How many units must be sold to earn the targetedpre-tax income?a) 21,250b) 17,500c) 22,500d) 18,750

Step 1: Definition of Target Sales Volume in UnitsTarget Sales Volume in Units refers to the number…

Answered: Sunbeam Corp. wants to earn a pre-tax…

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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Sunbeam Corp. wants to earn a pre-tax income of $50,000. The company has total fixed costs of $120,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted pre-tax income? a) 21,250 b) 17,500 c) 22,500 d) 18,750