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Examveda

If fixed cost is $20000, target operating income is $10000 and contribution margin per unit is $1200 then required units to be sold will be

A. 55 units

B. 45 units

C. 35 units

D. 25 units

Answer: Option D

Solution(By Examveda Team)

Required units = ( fixed cost + operating income) ÷ Contribution margin per unit
= ($20000 + $10000) ÷ $1200 = 25 units.

This Question Belongs to Management >> Management Accounting

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