Answer the Following Questions Using the Information Below

question 39

Multiple Choice

Answer the following questions using the information below:
The following information is for Nichols Company:

-The number of units that Nichols Company must sell to reach targeted operating income of $30,000 is:

• A)5,000 units
• B)6,500 units
• C)3,334 units
• D)4,334 units

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Definitions:

Actual Quantity

The real amount of materials, labor, or overhead used in production or service delivery, as opposed to budgeted or standard quantities.

Standard Variable Overhead

This refers to the portion of variable overhead costs in production that varies directly with the level of production output or activity.

Actual Units Produced

The real number of units manufactured during a specific period, as opposed to planned or estimated production figures.

Standard Rate Per Hour

The standard rate per hour denotes the predetermined cost or wage rate for work performed, typically used in budgeting and payroll calculations.