Applying Excel 12: Units to achieve target pretax income Which of the following formulas in cell D12 correctly calculates the number of units required to achieve the targeted pretax income? Hint: Remember that Excel uses the order of operations. PARENTHESES then EXPONENTS then MULTIPLICATION and DIVISION then ADDITION and SUBTRACTION. Use parentheses around any calculations in either the numerator or denominator. D $700,000 B C 1 Target pretax income 2 3 Units $ per unit 4 Sales 2,000 $500 5 Variable costs 2,000 $300 6 Contribution margin 7 Fixed costs 8 Pretax income 9 10 1) Compute the number of break-even units 11 2) Compute the break-even point in sales dollars 12 3) Sales (units) to achieve targeted pretax income of $700,000 13 4) Sales (dollars) to achieve targeted pretax income of $700,000 14 Total $1,000,000 600,000 400,000 210,000 $190,000 1,050 $210,000 4,550 $2,275,000 Multiple Choice =+(D7+D1y/C4-05 =+(D7+D1)/(C4-C5) =+(D7+D1/C4-C5) O O =+D7+D1/(C4-C5)