Sunny Pastures reported the following information:
Fixed costs $3,000
Target Operating Income 5,000
Contribution margin per unit 90
Required:
Compute the quantity of units required to be sold to have an operating income of $5,000.
A) 24.44 units
B) 40.22 units
C) 64.44 units
D) 88.88 units
E) 94.44 units
D
Explanation: D) [($3,000 + $5,000 ) / $90] = 88.88 units
Business
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