Problem
Suppose a business has pricing and cost information as follows::
|
Price and Cost Information
|
Amount
|
|
Selling Price per Unit
|
$10.00
|
|
Variable Cost per Unit
|
$2.50
|
|
Total Fixed Cost
|
$600
|
For the upcoming period, the company wishes to generate operating income of $900. Given the cost and pricing structure for the company's product, how many units must the company sell to attain its target income?