The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fixed expenses 180,000 Net income $120,000 The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. How many units would the company have to sell to attain target profits of $150,000? 22,000 units. 26,667 units. 25,000 units. 37,500 units.
The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fixed expenses 180,000 Net income $120,000 The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. How many units would the company have to sell to attain target profits of $150,000? 22,000 units. 26,667 units. 25,000 units. 37,500 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following is Addison Corporation's contribution
format income statement for last month:
Sales
Less variable expenses 700,000
Contribution margin 300,000
Less fixed expenses
180,000
Net income
$120,000
The company has no beginning or ending inventories.
A total of 20,000 units were produced and sold last
month.
How many units would the company have to sell to
attain target profits of $150,000?
22,000 units.
$1,000,000
26,667 units.
25,000 units.
37,500 units.
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