Question

Zulu sells its waterproof phone case for 119 per unit. fixed costs total 182,000, and variable costs are 44 per unit. How many units must be sold to achieve a target income of 214,000?

Answer 1

To achieve a target income of $214,000, Zulu must sell 5,280 units of its waterproof phone cases.

Step-by-step explanation:

The student asked how many units must be sold by Zulu to achieve a target income of $214,000, given the phone case unit price is $119, fixed costs total $182,000, and variable costs are $44 per unit. To find the number of units required to meet the target income, we'll use the following formula, which is based on the break-even point calculation:

Required units = (Fixed Costs + Target Income) / (Unit Price - Variable Cost per Unit)

Inserting the given values:

Required units = ($182,000 + $214,000) / ($119 - $44) = $396,000 / $75 = 5,280 units

Therefore, Zulu must sell 5,280 units of its waterproof phone cases to achieve a target income of $214,000.