Mimi Incorporated Has a Targeted Operating Income of $518,000 for the Upcoming

question 150

Essay

Mimi Incorporated has a targeted operating income of $518,000 for the upcoming year. The selling price of its single product is $40.50 each, while the variable cost per unit is $12.50. Fixed costs total $182,000.
Calculate the following:
a. Contribution margin per unit
b. Breakeven point in units
c. Units to be sold to earn the targeted operating income

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Definitions:

Breach

The act of violating a law, agreement, or code of conduct, often resulting in legal consequences.

Duty of Honesty and Fidelity

An ethical obligation requiring individuals, especially employees or agents, to act truthfully and loyally towards their employers or principals.

Notice-And-Cure Provision

A contractual clause that allows a party in breach of the contract to fix (cure) the breach within a specified time after receiving notice.

Franchisor's Reputation

The image or perception of the corporate brand that licenses its business model and trademark to franchisees.