Question

If the selling price per unit is $ 72​, variable expenses per unit are $ 46​, target operating income is $ 39 comma 000​, and total fixed expenses are $ 21 comma 000​, how many units must be sold to reach the target operating​ income?

Answer 1

2308

Step-by-step explanation:

Target operating income = Total revenue - Total cost

Total revenue = price x quantity = $72q

Total cost = Fixed cost + variable cost

Variable costs = $46q

Fixed cost = $21,000

Total cost = $21,000 + $46q

$39,000 = $72q - ($21,000 + $46q )

$26q - $21,000 = $39,000

$26q = $60,000

Q = 2308

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