Dallas Corporation wishes to market a new product at a selling price of $1.50 per unit. Fixed
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Question:
Dallas Corporation wishes to market a new product at a selling price of $1.50 per unit. Fixed costs for this product are $100,000 for less than 500,000 units of output and $150,000 for 500,000 or more units of output. The contribution-margin percentage is 20%.
Required: How many units of this product must be sold to earn a target operating income of $100,000.
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