Number of units needed to be sold in order to break even

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Reference no: EM131913338

Acme Medical Supply desires a target operating income amount of $100,000 with the assumptions listed below.

Assumptions:

Desired (target) operating income amount: 100,000

Unit price for sales: 80

Variable cost per unit: 60

Total fixed cost: 60,000

Calculate the required revenue to achieve the target operating income:

Complete the Contribution Income Statement to prove the totals:

Revenue: 640,000

Variable cost: 480,000

Contribution margin: 160,000

Fixed costs: 60,000

Target operating income: 100,000

Number of unites needed: 640,000

(1) The number of units needed to be sold in order to attain $100,000 in net income.

(2) The number of units needed to be sold in order to break even.

Reference no: EM131913338

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