Question

how do i solve this

Bottles R Us Bottling Company provides the following information about its single product Targeted operating income $657,790 Selling price per unit $7.90 Variable cost per unit $5.70 Total fixed cost $129,800 How many units must be sold to earn the targeted operating income? (Round the final answer up to the nearest unit.) O A. 357,996 OB. 298,995 O c. 57,911 OD. 59,000

Answer 1

Number of units to be sold to earn the target operating income

Number of units to be sold to earn the target operating income = [Total fixed costs + Target operating income] / [Selling price per unit – Variable cost per unit]

= [$129,800 + $657,790] / [$7.90 per unit - $5.70 per unit]

= $787,590 / $2.20 per unit

= 357,996 units

“Hence, the Number of units to be sold to earn the target operating income will be 357,996 units”