Question

Workshape Company sells office chairs at $400 per unit, incurs a variable cost per unit of $150, and has a total fixed expense of $40,000. How many units must be sold to achieve a target operating income of $60,000? a. 180 units b. 400 units c. 200 units d. 450 units e. 275 units

Name: workshape company sells office chairs at 400 per unit incurs variable cost per unit of 150 and has a total fixed expense of 40000 how many units must be sold to achieve a target operating in 98837
Uploaded: 2022-07-14T05:44:44-08:00
Duration: 3 min 23 s
Channel: Prabhat Tyagi
Description: workshape company sells office chairs at 400 per unit incurs variable cost per unit of 150 and has a total fixed expense of 40000 how many units must be sold to achieve a target operating in 98837

          Workshape Company sells office chairs at $400 per unit, incurs a variable cost per unit of $150, and has a total fixed expense of $40,000. 

How many units must be sold to achieve a target operating income of $60,000?
a. 180 units
b. 400 units
c. 200 units
d. 450 units
e. 275 units

Added by Jesse M.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Prabhat Tyagi

07/14/2022

Step 1

Contribution per unit = Sales per unit - Variable cost per unit Contribution per unit = $400 - $150 Contribution per unit = $250 Show more…

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Workshape Company sells office chairs at $400 per unit, incurs a variable cost per unit of $150, and has a total fixed expense of $40,000. How many units must be sold to achieve a target operating income of $60,000? a. 180 units b. 400 units c. 200 units d. 450 units e. 275 units