Sandhill Corporation has fixed costs of $323,500. It has a unit
selling price of $6.35, unit variable cost of $4.85, and a target
net income of $1,520,000.
Compute the required sales in units to achieve its target net
income.
Required sales |
enter the required sales in units |
units |
Required sales in units = (fixed cost + targeted net income)/ contribution margin per unit
Contribution margin per unit = unit selling price – unit variable cost = 6.35-4.85 = $1.50
Required sales in units = (323500+1520000)/1.50 = 1229000 units
Sandhill Corporation has fixed costs of $323,500. It has a unit selling price of $6.35, unit...
Brief Exercise 18-12 Sandhill Corporation has fixed costs of $323,500. It has a unit selling price of $6.35, unit variable cost of $4.85, and a target net income of $1,520,000. Compute the required sales in units to achieve its target net income. Required sales enter the required sales in units units
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