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If fixed cost is 20000 target operating income is 10000 and...

This question belongs to Management Management Accounting
Management Accounting
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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

Answer & Solution
Correct Answer: Option D
Required units = ( fixed cost + operating income) ÷ Contribution margin per unit
= ($20000 + $10000) ÷ $1200 = 25 units.
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