Respuesta :
Answer:
125,000 units
Explanation:
Given that,
Target profit = $300,000
Unit sales price = $12
Unit variable cost = $8
Total fixed costs = $200,000
Firstly, we need to find out the contribution margin per unit:
= Unit sales price - Unit variable cost
= $12 - $8
= $4
Now, units required to sold for earning the desired profit is calculated by dividing the sum of desired net income and total fixed costs by the contribution margin per unit. It is calculated as follows:
= (Target net income + Total fixed cost) ÷ Contribution margin per unit
= ($300,000 + $200,000) ÷ $4
= $500,000 ÷ $4
= 125,000 units
Therefore, this company must be sold 125,000 units to earn income of $300,000.
Answer:
$125,000
Explanation:
Data provided as below:-
Profit = $300,000
Total fixed cost = $200,000
Sales price = $12
Unit variable cost = $8
The computation of income is shown below:-
Units must be sold to earn net income of $300,000 = Profit + Total fixed costs ÷ Sales price - Unit variable cost
= $300,000 + $200,000 ÷ $12 - $8
= $500,000 ÷ $4
= $125,000
So, for computing the net income we simply applied the above formula.
