Question
Kip's Kabobs has Fixed Costs of $80,000 and a contribution margin of $10/unit. In the current period, Kip sells 11,500 units for $100/unit. If Kip
Kip's Kabobs has Fixed Costs of $80,000 and a contribution margin of $10/unit. In the current period, Kip sells 11,500 units for $100/unit.
If Kip wishes to make a pre-tax profit (target income) of $400,000, how many units must they sell?
Group of answer choices
400,000
48,000
40,000
8,000
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Financial Accounting The Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
2nd Edition
0030270995, 978-0030270994
