Workshape company sells office chairs at $400 per unit, incurs variable cost per unit of $150, and has a total fixed expense of $40,000.

how many units must be sold to achieve a target operating income of $60,000?
a. 180 units
b. 400 units
c. 200 units
d. 450 units
e. 275 units

Option B: 400 Units of chairs must be sold to earn a target operating income of $60,000

Explanation:

Number of Units to be sold to earn a Target Operating Income of $60,000

= (Target Operating Income + Total Fixed Expenses) ÷ Contribution Per Unit

Where: Contribution per unit = Selling Price per unit - Variable costs per unit

Selling Price per Chair               $400  

Variable Cost per Chair               $(150)

Contribution per Chair               $250  

Number of Units to be sold to earn a Target Operating Income of $60,000

= ($40,000 + 60,000) ÷ 250

= 400 Units of Chairs

                               Income Statement of Workshop

Sales Revenue ($400 ×400 Units)                 $160,000  

Less: Variable Costs ($150 × 400 Units)            $(60,000)

Contribution                                                        $100,000

Less: Fixed Expenses                                          $(40,000)

Target Operating Profit                                       $60,000

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

happy to

pls mark as brainliest

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)