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Assume the following: (1) Desired target operating income is $20,000, unit price for sales is $500, variable cost per unit is $300, and total fixed
Assume the following: (1) Desired target operating income is $20,000, unit price for sales is $500, variable cost per unit is $300, and total fixed cost is $10,000; (2) We have applied the formula to calculate the contribution margin method of determining target operating income and have arrived at a numerator amount of $30,000 (20,000 plus 10,000) and a denominator amount of $200 (500 minus 300); (3) These figures yield an answer of 150 units (30,000 divided by 200). What is the required revenue to achieve the target operating income of $20,000? $45,000 $30,000 $150,000 $75,000
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