Homework Answers
ANSWER : 4600 UNITS
Operating Income
Operating income = Sales - Variable cost - Fixed cost
Contribution per unit = Sales per unit - Variable cost per unit
= $18 - $6
= $12
Operating income = Contribution - Fixed cost
Contribution = Contribution per unit × Number of units sold
Let X be the number of units sold
$ 18400 = 12 X - $ 36800
12 X = $ 18400 + $ 36800
X = $ 55200 ÷ 12
X = 4600 units
She should sell 4600 units to have $18400 as operating income.
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