How many units must company sell to attain its target income, Managerial Accounting

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How many units must company sell to attain its target income

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?

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Managerial Accounting: How many units must company sell to attain its target income

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