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# Units to be sold

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MuNu Ltd. manufactures three different products - Oceanus, Tethys and Themis - with the sales mix having remained relatively constant over the past few years.

Financial results for the past year are:

Product # of Units Sold Selling Price per Unit Variable Cost per Unit

Oceanus 95,000 \$15 \$8
Tethys 133,000 \$22.50 \$9.50
Themis 152,000 \$28 \$12.50

Fixed costs are \$1,565,000 per period; and the corporate tax rate is 40%. Given the sales mix, how many units of Product Themis must be sold in order to achieve an operating income of \$450,000?

a. 58,720
b. 64,480
c. 74,080
d. 161,200
e. 260,845

#### Solution Preview

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We first calculate the weighted average contribution margin
This comes to ...

#### Solution Summary

The solution explains how to determine the number of units to sold to generate the desired operating income

\$2.19