Given breakeven sales in units of 45,700 and a unit contribution margin of $6, how many units must be sold to reach a target operating income of $25,200?
A) 45,700
B) 49,900
C) 1,813
D) 4,200

Question

Quizplus · Accepted Answer

To reach a target operating income of $25,200 with a unit contribution margin of $6, divide the target operating income by the unit contribution margin: $25,200 / $6 = 4,200 units. To find the total units needed to be sold, add this to the breakeven sales in units: 45,700 + 4,200 = 49,900 units.

Given Breakeven Sales in Units of 45,700 and a Unit