Question

If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, the amount of sales (units) required to realize an operating income of $200,000 is a.10,769 units b.5,833 units c.12,000 units d.9,231 units

Answer 1

Answer:

10,769 units

Explanation:

Fixed costs is 1,200,000

The selling price is 240

The variable cost is 110

operating income 200,000

This can be calculated by equating both sides

200,000 + 1,200,000= 240x-110x

140,000= 130x

Divide both sides by the coefficient of x which is 130

140,000/130= 130x/130

x = 10769.2307