Examveda
Examveda

If total production is 25000 units and target annual operating income is $300000 then target operating income per unit would be

A. $15

B. $12

C. $16

D. $18

Answer: Option B

Solution(By Examveda Team)

Target operating income = Target annual operating income ÷ Total production
= $300000 ÷ 25000 = $12.

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