Units Needed to Achieve a Target Net Operating Income
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The small table of figures has been provided by a semi-new company called Prodigy Corp. that has requested your assistance as a financial analysts. Please read the data below and answer the question beneath it.:
Sales per period 5,000 units
Selling price $60 per unit
Variable manufacturing cost $11 per unit
Selling expenses $5,000 plus 5% of selling price
Administrative expenses $3,000 plus 10% of selling price
How many units are required to reach Prodigy's goal net operating income, $60,000?
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Solution Summary
The answer is given in an attached Excel file of calculations that can be viewed by highlighting the cell in question.
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