QUESTION 41 Catchall Inc. makes a single product that it sells for $70 each. Variable costs are $25 per unit and annual fixed costs total $234,000 per year. The company would like to realize operating income next year of $90,000. What level of sales in units must the company achieve to reach its target profit? O A. 8,400 OB. 12,960 O C. 5,200 O D. 7,200

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
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QUESTION 41
Catchall Inc. makes a single product that it sells for $70 each. Variable costs are $25 per unit and annual fixed costs total $234,000 per year. The company would like to realize operating income next year
of $90,000. What level of sales in units must the company achieve to reach its target profit?
O A. 8,400
OB. 12,960
O C. 5,200
O D. 7,200
Transcribed Image Text:QUESTION 41 Catchall Inc. makes a single product that it sells for $70 each. Variable costs are $25 per unit and annual fixed costs total $234,000 per year. The company would like to realize operating income next year of $90,000. What level of sales in units must the company achieve to reach its target profit? O A. 8,400 OB. 12,960 O C. 5,200 O D. 7,200
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