If fixed costs are $550,000 and the unit contribution margin is $15,what amount of units must be sold in order to realize an operating income of $125,000?
A)45,000 units
B)10,417 units
C)45,833 units
D)28,333 units

Question

Quizplus · Accepted Answer

Fixed costs = $550,000Unit contribution margin = $15Operating income = $125,000Units to be sold = Fixed costs / (Unit contribution margin - Operating income)= 550,000 / (15 - 125,000)= 550,000 / (-110,000)= 5= 45,000 units

If Fixed Costs Are $550,000 and the Unit Contribution Margin