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    Calculating Units Necessary for a Certain Net Operating Income

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    Evergreen corp has provided the following data:

    sales per period: 1,000 units
    selling price: $40 per unit
    Variable manufacturing cost: $12 per unit
    Selling expense: $5,100 plus 5% of selling price
    Administrative expenses: $3000.00 plus 20% of selling price

    The number of units needed to achieve a target net operating income of 99,900 would be ...?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:49 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculating-units-necessary-certain-net-operating-income-300254

    Solution Preview

    Please see the attached file.

    Evergreen corp has provided the following data:
    sales per period 1,000 units
    selling price $40 per unit
    Variable manufacturing cost $12 per unit
    Selling expense $5,100 plus 5% of selling price
    Administrative expenses $3000.00 plus 20% of ...

    Solution Summary

    The solution calculates the number of units needed to achieve a target net operating income.

    $2.19

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