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​Richard's Framing Company provides the following information about its single product. Targeted operating income $58,000 Selling price per unit $ 200 Variable cost per unit $ 80 Total fixed cost $276,000 How many units must be sold to earn the targeted operating​ income? (Round the final answer up to the nearest​ unit.)

Respuesta :

Answer:

Number of units sold will be equal to 2783

Explanation:

We have given targeted operating income = $58000

Selling price per unit = $200

Variable cost per unit = $80

Total fixed cost = $276000

So contribution margin = $200 - $80 = $120

We have to find the number of units sold

So number of units sold will be equal to [tex]\frac{fixed\ cost+targeted\ income}{contribution\ margin}=\frac{58000+276000}{120}=2783units[/tex]