Units for income $=($Target income$/$ unit contribution margin$)+$ Breakeven Volume Sensitivity Cost$-$Volume$-$Profit Analysis and Production Versus Period Costs, Multiple$-$ Product Setting

would need to be sold in order to earn a target income of $$96,000?$ Assume the same sales mix and additional fixed costs as in Requirement $3.$

Canoe target income units

$x$ canoes

Paddle target income units

$x$ paddles

Margin of Safety

$$ total MOS units above total BE units

$

$$ MOS in sales dollars

Change in operating income $=$ Unit contribution Margin $*$ Change I units sold

Change in profits $=$ contribution margin RATIO $*$ Change in sales

Percentage change in profits $=$ degree of operating leverage $*$ percent change in sales

Operating income $+($Operating income $*$ percent change$)$

Operating income $=($ Price X units sold$)-($ Unit Variable Cost $*$ Units Sold$)-$ Fixed Costs

To solve for positive operating income, replace the operating income term with the target income. Each canoe is sold for $$500$ dollars and each paddle sells for $$50.$ Each canoe has a variable cost of $300$ and a fixed cost of $80,000.$ Each paddle has a variable cost of $40$ and a total fixed cost of $10,000.$ there is $30,000$ of common fixed costs. the Break even for Canoe is $500$ units and the break even for paddles are $2000.$ To reach a target income of $96,000$ we need to utilize the. the new formula would be $96,000=(500*$ number of units$)-(50*$ number I have given you all of the information previously and I have given you the correct formula$-$ Please Solve this

If both the variable and fixed production costs associated with the CANOE product line increased by $5\%,$ how many canoes and paddles would need to be sold in order to earn a target income of $$96,000?$

Canoe target income units$\_\_\_\_\_$

Paddle target income units$\_\_\_\_\_$