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    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.