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Semmy [17]
2 years ago
15

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units

that must be sold in order to achieve a target pretax income of $209,800.
Sales (57,000 units) $ 969,000
Costs:
Direct materials $ 167,800
Direct labor 240,000
Fixed factory overhead 100,000
Variable factory overhead 150,700
Fixed marketing costs 110,700
Variable marketing costs 40,000 809,200
Pretax income $ 159,800
Business
1 answer:
bogdanovich [222]2 years ago
6 0

Answer:

64,692

Explanation:

For computation of budgeted number of units first we need to find out the contribution margin and budgeted contribution margin per unit which is shown below:-

Contribution Margin

= Revenues -Variable Costs

= $969,000 - ($167800 + $240,000 + $150,700 + $40,000)

= $969,000 - $598,500

= $370,500

Budgeted contribution margin per unit = Contribution Margin ÷ Sales units

= $370,500 ÷ 57,000 units

= 6.50

Budgeted Unit Sales = Total Fixed Costs + Target Pretax Income ÷ Contribution margin per unit

= (($100,000 + $110,700) + $209,800) ÷ 6.50

= $420,500 ÷ 6.50

= 646,92.31

or

= 64,692

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