Zhao Co. has fixed costs of $378,200. Its single product sells for $179 per unit, and variable costs are $118 per unit. Compute the level of sales in units needed to produce a target (pretax) income of $122,000.

8,200 units

Explanation:

Given that,

Fixed costs = $378,200

Selling price = $179 per unit

Variable costs = $118 per unit

Target (pretax) income = $122,000

Contribution margin:

= Selling price - Variable costs

= $179 per unit - $118 per unit

= $61 per unit

Unit sales at a desired profit of $122,000:

= (Fixed expenses + Target profit) ÷ Contribution margin

= ($378,200 + $122,000) ÷ $61 per unit

= $500,200 ÷ $61 per unit

= 8,200 units

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3