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Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual ¦xed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management
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Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual ¦xed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pretax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income.

User Jack Pettinger
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Answer: 35500units

Explanation: to earn a predetermined net income before tax,the sales units must be equivalent to the sum of fixed cost and pretax net income then divide by the contribution per unit. Contrition is selling price per unit minus variable cost per unit

User Joe Jasinski
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