Martin Enterprises has a predicted operating income of $140,000. Its total variable expenses are $50,000 and its total fixed expenses are $20,000. The unit contribution margin for the company's sole product is $10
The number of units that Martin Enterprises needs to sell to achieve the predicted operating income would be
A) 12,000.
B) 21,000.
C) 11,000.
D) 16,000.
D
Explanation: D) Fixed expenses $20,000 + $140,000 Operating Income / $10 Contribution Margin = 16,000
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