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dcooper78 dcooper78
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A week ago
Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target net income of $50,000, assuming a tax rate of 20%?

▸ 50,000

▸ 52,500

▸ 55,625

▸ 35,000
Textbook 

Managerial Accounting


Edition: 4th
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OCbobaOCboba
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A week ago
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55,625

$50,000 ÷ (1 0.20) = $62,500; ($62,500 + $160,000) ÷ $4 = 55,625 units
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dcooper78 Author
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A week ago
Helped a lot
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You make an excellent tutor!
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Good timing, thanks!
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