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Accounting

Problem:

New Insights, Inc. is looking to achieve a net income of 15 percent of sales. Here's the firm's profile: Unit sales price is $10; variable cost per unit is $6; total fixed costs are $40,000.

Required:

Question: What is the level of sales in units required to achieve a net income of 15 percent of sales?

12,000 units
21,000 units
16,000 units
20,000 units

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167224

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