If targeted sales volume in units is 124,600, total fixed costs are $15,600, and contribution margin per unit is $0.30, then the targeted net income is
A) $37,380.
B) $32,700.
C) $15,600.
D) $21,780.

Question

Quizplus · Accepted Answer

The targeted net income is calculated by multiplying the contribution margin per unit by the targeted sales volume and then subtracting the total fixed costs: (124,600 units * $0.30) - $15,600 = $21,780.

If Targeted Sales Volume in Units Is 124,600, Total Fixed