Bottles R Us Bottling Company provides the following information about its single product. Targeted operating income...

Question

Question

Bottles R Us Bottling Company provides the following information about its single product.

How many units must be sold to earn the targeted operating income?

Answer 1

Answer #1

Contribution margin=Sales-Variable cost

=7.50-4.60=$2.9 per unit

Target Contribution margin=Fixed expenses+Target income

=163,560+654,870=$818430

Hence units to be sold=818430/2.9

=282,218 units(Approx).

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Answer 2

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