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

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Answer 1

Answer #1

Answer is 6,500 units

Contribution Margin per unit = Selling Price per unit - Variable Cost per unit
Contribution Margin per unit = $150 - $90
Contribution Margin per unit = $60

Required Sales in units = (Fixed Costs + Target Operating Income) / Contribution Margin per unit
Required Sales in units = ($300,000 + $90,000) / $60
Required Sales in units = $390,000 / $60
Required Sales in units = 6,500

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Answer 2

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