Solution
Anticipated break-even sales (units). 21,100
units
Sales (units) required to realize operating income of $112,700.
26000
units
Working for requirement a
|
A |
Sale Price per unit |
$
69.00 |
| B |
Variable
Cost per Unit |
$
46.00 |
| C=A -
B |
Unit
Contribution |
$
23.00 |
| D |
Total
Fixed cost |
$ 485,300.00 |
|
E=D/C |
Breakeven point in units |
21,100 |
Working for requirement b
|
A |
Sale Price per unit |
$
69.00 |
| B |
Variable
Cost per Unit |
$
46.00 |
| C=A -
B |
Unit
Contribution |
$
23.00 |
| D |
Total
Fixed cost +Desired Income |
$ 598,000.00 |
|
E=D/C |
Units to
be sold |
26,000 |
