Thursday, 1 May 2014

How many units would the company have to sell to attain the targ... The following is Addison Corporation's contribution format income statement for last month: Sales $1,393,800 Variable expenses 864,156 Contribution margin 529,644 Fixed expenses 165,000 Net operating income $ 364,644 The company has no beginning or ending inventories. A total of 20,200 units were produced and sold last month. How many units would the company have to sell to attain the target profit of $461,658? 29,607 39,400 23,900 26,900


How many units would the company have to sell to attain the targ...
The following is Addison Corporation's contribution format income statement for last month:
 Sales   
$1,393,800
 Variable expenses   
    864,156
 Contribution margin   
529,644
 Fixed expenses   
    165,000
 Net operating income   
$ 364,644

The company has no beginning or ending inventories. A total of 20,200 units were produced and sold last month.
How many units would the company have to sell to attain the target profit of $461,658?
29,607
39,400
correct
23,900
26,900
 

Answer
23,900