Answered

Find detailed and accurate answers to your questions on IDNLearn.com. Our platform provides trustworthy answers to help you make informed decisions quickly and easily.

Valdez Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (6,000 units) $240,000
Variable expenses 180,000
Contribution margin 60,000
Fixed expenses 54,000
Net operating income 6,000

The number of units that must be sold to achieve a target profit of $24,000 is closest to: _______

Sagot :

Tundexiidn

Answer:

7,800 units

Explanation:

Contribution margin per unit = 60,000 / 6,000 units

Contribution margin per unit = $10 per unit

Number of Units = (Target Profit + Fixed Expense) / Contribution margin per unit

Number of Units = ($24,000 + $54,000) / $10

Number of Units = $78,000 / $10

Number of Units = 7,800

So, the number of units that must be sold to achieve a target profit of $24,000 is 7,800 units

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. For precise answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.