9. The required sales in units to achieve a target net income is 10. In a sales

Question

9. The required sales in units to achieve a target net income is

10. In a sales mix situation, at any level of units sold, net income will be higher if

11. A company can sell all the units it can produce of either Product A or Product B but not both. Product A
has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit
contribution margin of $30 and takes three machine hours to make. If there are 1,000 machine hours
available to manufacture a product, income will be

14. Scottie Company

Explanation / Answer

9:c. (fixed cost + target net income) divided by contribution margin per unit.

10:. more higher contribution margin units are sold than lower contribution margin units.

Critical thinking, see pg. 246 Remember, the contribution margin is what the product contributes

to covering fixed costs. Since fixed costs don

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