CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 4 Not 000

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 4 Not 0.00 points out of 3.00 Flas question Net Income Planning Nolden Company has charged a selling price of $20 per unit, incurred variable costs of $14 per unit, and total fixed costs of $75,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? (a) $18.000 (b) $27,000: or (c) equal to 20% of sales revenue. (a) o (b) o (c) 0 x units x units x units Check You have correctly selected o. Incorrect Marks for this submission: 0.00.00 Next page nswers Previous page

Solution

Calculate units :

a) Required sales unit = (75000+18000)/(20-14) = 15500 units

b) Required sales unit = (75000+27000)/(20-14) = 17000 units

c) Sales = Variable cost+Fixed cost+Net income

20X = 14X+75000+4X

2X = 75000

X(required sales unit) = 75000/2 = 37500 units

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