Question

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $183,500. Sales (55,000 units) $ 990,000 Costs: Direct materials $ 202,000 Direct labor 240,500 Fixed factory overhead 102,500 Variable factory overhead 150,500 Fixed marketing costs 110,500 Variable marketing costs 50,500 856,500 Pretax income $ 133,500

Answer 1

Answer:

see explanation

Explanation:

Units to achieve target profit = Target Profit + Fixed Cost ÷ Contribution margin ratio.

where ,

Contribution margin ratio = Contribution ÷ Sales