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How Many Units Would Have to Be Sold to Yield

question 195

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How many units would have to be sold to yield a target operating profit of $44 000,assuming variable costs are $30 per unit,total fixed costs are $4000,and the unit selling price is $40?


Definitions:

Job-Order Costing

A cost accounting system used to allocate costs to specific jobs or batches, useful for unique or custom orders.

Machine-Hours

A measure of production time, referring to the total hours a machine is operated within a specific period.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products.

Job-Order Costing

An accounting method used to track costs specifically associated with a given job or project.

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