Question: Thach LLC has provided the following contribution format income statement for the sales of 10,000 units: Answer the following two independent questions related to the
Thach LLC has provided the following contribution format income statement for the sales of 10,000 units:
| Answer the following two independent questions related to the data above for Thach LLC: |
| 1) Estimate how many units must be sold to achieve a target profit of $50,000. |
| 2) If the number of units sold decreases by 2,000 units, sales price increases $3 per unit, |
| variable costs increase $1 per unit and fixed costs decrease $7,000, what would be the resulting net operating income? |
Please show work
$ Sales Variable costs Contribution margin Fixed costs Net operating income 650,000 570,000 80,000 62,000 18,000 $ $
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