Q296
If fixed cost is 20000, target operating income is 10000 and contribution margin per unit is 1200 then required units to be sold will be
A.
55 units
B.
45 units
C.
35 units
D.
25 units
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Required units = ( fixed cost + operating income) ÷ Contribution margin per unit = (10000) ÷ $1200 = 25 units.