Answer:
= 9,400 units
Explanation:
Sales (7,000 units) $210,000
Variable expenses 136,500
Contribution margin 73,500
Fixed expenses 67,200
Net operating income $6,300
The number of units that must be sold to achieve a target profit of $31,500 is closest to:
Contribution Margin per item = $ 73,500/ 7000 items
=$ 10.50
Net income= contribution margin- fixed costs
$31,500= 10.50x quantity -67,200.00
$31,500=10.50Q-$ 67,200
10.50 q= 31500+67200
10.50 q= $ 98,700
q= $ 98700/10.50
Quantity = 9,400 units
