Question
Rahm Company produces a single product. The projected income statement for the coming year, based on sales of 160,000 units, is as follows: Sales $2,000,000
Rahm Company produces a single product. The projected income statement for the coming year, based on sales of 160,000 units, is as follows:
| Sales | $2,000,000 |
| Less: Variable costs | 1,400,000 |
| Contribution margin | $600,000 |
| Less: Fixed costs | 450,000 |
| Operating income | $150,000 |
Required:
5. How many units must be sold to earn a profit equal to 12 percent of sales?
answer is not 184,000
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
