How many units would have to be sold to yield a target operating profit of $44 000,assuming variable costs are $30 per unit,total fixed costs are $4000,and the unit selling price is $40?
A)4800 units
B)4400 units
C)4000 units
D)3600 units

Question

Quizplus · Accepted Answer

The target operating profit is $44,000. The variable cost per unit is $30, and the total fixed costs are $4,000. The unit selling price is $40.To calculate the number of units that would have to be sold to yield a target operating profit of $44,000, we can use the following formula:Target operating profit = (Unit selling price - Variable cost per unit) * Number of units sold - Total fixed costs$44,000 = ($40 - $30) * Number of units sold - $4,000$44,000 = $10 * Number of units sold - $4,000$48,000 = $10 * Number of units soldNumber of units sold = $48,000 / $10Number of units sold = 4,800 unitsTherefore, the number of units that would have to be sold to yield a target operating profit of $44,000 is 4,800 units.

How Many Units Would Have to Be Sold to Yield