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Martin Enterprises has a predicted operating income of $100,000. Its total variable expenses are $45,000 and...

Martin Enterprises has a predicted operating income of $100,000. Its total variable expenses are $45,000 and its total fixed expenses have doubled from $23,000 to $46,000. The unit contribution margin for the company's sole product is $15. The number of units that Martin Enterprises needs to sell to achieve the predicted operating income would be 6734. 12,734. 3600. 9734.

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Answer #1

Units needed to achieve target income

= (Fixed costs +target profit) /Contribution margin per unit

= (46,000+100,000)/15

= 146,000/15

= 9734 units

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