2 qu Company XYZ produces and sells headphones. The company has total...
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Accounting
2 qu
Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $70 per unit and has variable costs of $50 per unit. Next year XYZ Company wishes to earn an operating income that equals 20% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: O a. 933 O b. 1,120 O c. 6,720 O d. 5,600 O e. 4,480 XYZ company has sales of $260,000, a contribution margin ratio of 40%, and a target profit of $30,000. If 15,000 units were sold, what is the variable cost per unit? Select one: @ a. $8.67 b. $10.40 c. $9.00 d. none of the given answers. O e. $6.94
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