Thomas Corporation Has a Targeted Operating Income of $500,000 for the Upcoming

question 4

Essay

Thomas Corporation has a targeted operating income of $500,000 for the upcoming year.The selling price of their single product is $35.50 each,while the variable cost per unit is $10.50.Fixed costs total $270,000.
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 violation of a legal obligation, rule, or agreement.

Legally Recognizable Injury

A harm or loss that the law considers sufficient to provide a basis for a lawsuit.

Negligence Action

A legal action taken for injuries or losses resulting from the failure of an individual to exercise reasonable care.

Duty Of Care

Duty of care refers to the legal obligation to exercise a level of care and caution that an ordinarily prudent person would in similar circumstances to avoid harm to others.