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The following information pertains to the Flying Fig​ Corporation: Total Units for information given 7 comma 000 Fixed Cost per Unit $ 150 Selling Price per Unit $ 475 Variable Costs per Unit $ 125 Target Operating Income $ 150 comma 000 How many units need to be sold in order to reach the target​ profit? (Round your final calculation to the nearest​ unit.)

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facundobuzzetti

Answer:

Break-even point= 3429 units

Explanation:

Giving the following information:

Total Units for information given 7,000.

Fixed Cost per Unit $150

Selling Price per Unit $ 475

Variable Costs per Unit $125

Target Operating Income $ 150,000

Break-even point= fixed costs/ contribution margin

Break-even point= (150*7000 + 150,000) / (475 - 125)= 3429 units