Muscat Company wishes to market a new product at a selling price of $1.50 per unit. Fixed costs for this product are $100,000 for less than 500,000 units of output and $150,000 for 500,000 or more units of output. The contribution-margin percentage is 20%. Compute how many units of this product must be sold to earn a target operating income of $100,000.

Answer rating: 100% (QA)

Contribution margin ratio Salesvariable costvariable cost x 100 ... View the full answer