Bottles R Us Bottling Company provides the following information about its single product. Targeted operating income $654,870 Selling price per unit $7.50 Variable cost per unit $4.60 Total fixed cost $163,560 How many units must be sold to earn the targeted operating income?

Formula for net operating income = [tex]\textrm (selling price per unit - variable cost per unit) \times no. of units sold - total fixed cost[/tex]

Now, putting values in the formula

⇒ 654,870 =[tex](7.50 - 4.60) \times x - 163560[/tex]

⇒ 654,870 = [tex]2.9x - 163560[/tex]

Now, we Add both side with 163560

⇒ 818430 = [tex]2.9x[/tex]

Next, we divide both side by 2.9

∴ [tex]x = 282217.24[/tex] ≅ 282217

282217 number of units must be sold to achieve the targeted operating income.

Bottles R Us Bottling Company provides the following information about its single product. Targeted operating income ​$654,870 Selling price per unit ​$7.50 Variable cost per unit ​$4.60 Total fixed cost ​$163,560 How many units must be sold to earn the targeted operating​ income?

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Bottles R Us Bottling Company provides the following information about its single product. Targeted operating income $654,870 Selling price per unit $7.50 Variable cost per unit $4.60 Total fixed cost $163,560 How many units must be sold to earn the targeted operating income?