Calculate the number of units that must be sold in order to realize an operating income of $139,000 when fixed costs are $440,000 and unit contribution margin is $20.
A) 28,950 units
B) 29,650 units
C) 30,350 units
D) 31,550 units

Question

Quizplus · Accepted Answer

Operating income = Unit contribution margin * Units sold - Fixed costs$139,000 = $20 * Units sold - $440,000Units sold = ($139,000 + $440,000) / $20Units sold = 28,950 units

Calculate the Number of Units That Must Be Sold in Order