Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the rel

Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (7,000 units) $210,000
Variable expenses 136,500
Contribution margin 73,500
Fixed expenses 67,200
Net operating income $6,300
The number of units that must be sold to achieve a target profit of $31,500 is closest to:

A. 16,400 units
B. 42,000 units
C. 35,000 units
D. 9,400 units

0 thoughts on “Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the rel”

  1. Answer:

    = 9,400 units

    Explanation:

    Sales (7,000 units) $210,000

    Variable expenses 136,500

    Contribution margin 73,500

    Fixed expenses 67,200

    Net operating income $6,300

    The number of units that must be sold to achieve a target profit of $31,500 is closest to:

    Contribution Margin per item =  $ 73,500/ 7000 items

           =$ 10.50

    Net income= contribution margin- fixed costs

    $31,500= 10.50x quantity -67,200.00

    $31,500=10.50Q-$ 67,200

    10.50 q= 31500+67200

    10.50 q= $ 98,700

    q= $ 98700/10.50

    Quantity = 9,400 units

    Reply

Leave a Comment

sixty six ÷ eleven =