Target Operating Income Assignment
February 25th, 2020
1) If target sales in units is 60,000, total fixed expenses are $5,000, and the unit contribution margin is $0.40, what is the target operating income?
A.$29,000
B. $24,000
C. $19,000
D.$ 20
2) If total fixed costs are $447,500, the contribution margin per unit is $25, and targeted operating income is $20,000, how many units must be sold to breakeven?
A.17,900
B.18,700
C.11,187,500
D. 500,000. .