Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Valdez Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (6,000 units) $240,000
Variable expenses 180,000
Contribution margin 60,000
Fixed expenses 54,000
Net operating income 6,000

The number of units that must be sold to achieve a target profit of $24,000 is closest to: _______

Sagot :

Tundexi

Answer:

7,800 units

Explanation:

Contribution margin per unit = 60,000 / 6,000 units

Contribution margin per unit = $10 per unit

Number of Units = (Target Profit + Fixed Expense) / Contribution margin per unit

Number of Units = ($24,000 + $54,000) / $10

Number of Units = $78,000 / $10

Number of Units = 7,800

So, the number of units that must be sold to achieve a target profit of $24,000 is 7,800 units

We hope this was helpful. Please come back whenever you need more information or answers to your queries. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.