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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