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Blizzard [7]
4 years ago
6

How many units would have to be sold to yield a target operating income of​ $26,000, assuming variable costs are​ $27 per​ unit,

total fixed costs are​ $2,000, and the unit selling price is​ $32?
Business
1 answer:
Deffense [45]4 years ago
8 0

Answer:

The number of units must be sold to yield a target operating income of​ $26,000: 5,600 units

Explanation:

Contribution margin per unit = Sales price – Variable cost per unit = $32-$27=$5

The number of units must be sold to meet the target income figure are calculated by using following formula:

The number of units must be sold = (Total fixed cost + Targeted income) / Contribution margin per unit = ($2,000 + $26,000)/$5 = 5,600 units

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11Alexandr11 [23.1K]

Answer:

Effect on income= $4,800 increase

Explanation:

Giving the following information:

Unitary variable cost= $18

A foreign wholesaler offers to purchase 4800 units at $21 each. Vaughn would incur special shipping costs of $2 per unit if the order were accepted.

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

Effect on income= 4,800*21 - 4,800*(18 + 2)= $4,800 increase

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