QUESTION 5 Northenscold Company sells several products. Information of average revenue and costs is as follows:...

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QUESTION 5 Northenscold Company sells several products. Information of average revenue and costs is as follows: $150 per unit

business accounting

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Answer 1

Answer #1

The correct answer is (a) $1050000

Explanation:

Let Number of units to be sold = X

So, We know that Target net income = sales – variable costs – fixed costs

120000 = (150*X) - (90*X) - 300000

120000 + 300000 = 60X

420000 = 60X

X = 420000 / 60

X = 7000 units

Therefore, targeted sales revenue = Selling price per unit * Number of units

= 150 * 7000

= $1050000

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Answer 2

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