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Use this income statement to answer the following questions. Sales ($50 per unit) $5,000 Less: Cost of goods sold ($33 per unit) 3,300 Gross margin 1,700 Less operating expenses: Salaries $800 Advertising 400 Shipping ($2 per unit) 200 1,400 Operating Income $300

Use this income statement to answer the following questions. Sales ($50 per unit) $5,000 Less: Cost of goods sold ($33 per unit) 3,300 Gross margin 1,700 Less operating expenses: Salaries $800 Advertising 400 Shipping ($2 per unit) 200 1,400 Operating Income $300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EC 3 Question 2

Please help find units required for target op income

Use this income statement to answer the questions that follow. Sales ($50 per unit) $5,600 Less: Cost of goods sold ($35 per unit) 3,920 Gross margin 1,680 Less operating expenses: Salaries $576 Advertising 324 Shipping ($3 per unit) 336 1,236 Operating Income $ 444 (a)
Transcribed Image Text:Use this income statement to answer the questions that follow. Sales ($50 per unit) $5,600 Less: Cost of goods sold ($35 per unit) 3,920 Gross margin 1,680 Less operating expenses: Salaries $576 Advertising 324 Shipping ($3 per unit) 336 1,236 Operating Income $ 444 (a)
Use this income statement to answer the following questions. Sales ($50 per unit) $5,000 Less: Cost of goods sold ($33 per unit) 3,300 Gross margin 1,700 Less operating expenses: Salaries $800 Advertising 400 Shipping ($2 per unit) 200 1,400 Operating Income $300 (a) How many units would the company need to sell to earn $3,150 in operating income? (Round answer to the nearest whole units.) Units required to meet target operating income units eTextbook and Media
Transcribed Image Text:Use this income statement to answer the following questions. Sales ($50 per unit) $5,000 Less: Cost of goods sold ($33 per unit) 3,300 Gross margin 1,700 Less operating expenses: Salaries $800 Advertising 400 Shipping ($2 per unit) 200 1,400 Operating Income $300 (a) How many units would the company need to sell to earn $3,150 in operating income? (Round answer to the nearest whole units.) Units required to meet target operating income units eTextbook and Media
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