What is the sales volume in units required

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Question - The Angel Company had the following absorption costing income statement for the month of July 31, 2020: Angel Company Income Statement For the Month Ended July 31, 2020

Sales ($60 X 10,000) $600,000

Cost of goods sold:

Direct materials ($12 X 10,000) $120,000

Direct labor ($9 X 10,000) 90,000

Variable factory overhead ($7.50 X 10,000) 75,000

Fixed factory overhead 120,000 405,000

Gross profit $195,000

Selling and administrative expenses:

Variable ($1.50 X 10,000) $15,000

Fixed 90,000 105,000

Operating income $ 90,000

Required - What is the sales volume in units required to earn a before-tax target profit of $9,000?

Reference no: EM132772583

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