Reference no: EM132213010
Prepared Partnership prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 600 units to 1,800 units):
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000
Variable expenses. . . . . . . . . . . . . . . . . . 24,000
Contribution margin. . . . . . . . . . . . . . . . 16,000
Fixed expenses. . . . . . . . . . . . . . . . . . . . . 12,000
Net operating income. . . . . . . . . . . . . . . $ 4,000
Required:
How many units must be sold to achieve a target profit of $5,000
Please give step by step instructions.