Question
Baker Companys target operating income for Product Blue is $50,000. Fixed costs are $17,300 and variable costs are $12/unit. If Product Blue sells for $16/unit,
Baker Companys target operating income for Product Blue is $50,000. Fixed costs are $17,300 and variable costs are $12/unit. If Product Blue sells for $16/unit, how many units must be sold to achieve the target operating income?
Question 8Answer
a.
16,825 units
b.
12,500 units
c.
4,325 units
d.
3,125 units
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
