Answer:
The unit sales to earn the target income is 9,000 units
Explanation:
Annual income=Total sales-total expenses
where;
Annual income=$1,550,000
Total sales=Cost per unit sales×number of units sold (n)=(310×n)=310 n
Total expenses=Variable cost+annual fixed cost
Total expenses=(248×n)+992,000
Total expenses=248 n+992,000
Replacing;
1,550,000=310 n-(248 n+992,000)
1,550,000=310 n-248 n-992,000
310 n-248 n=1,550,000-992,000
62 n=558,000
n=558,000/62
n=$9,000
The unit sales to earn the target income is 9,000 units
