The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Sales (47,000 units) $987,000
Costs:
Direct materials $209,400
Direct labor 241,300
Fixed factory overhead 106,500
Variable factory overhead 151,300
Fixed marketing costs 111,300
Variable marketing costs 51,300 871,100
Pretax income $115,900
Compute the number of units that must be sold in order to achieve a target pretax income of $165,900.

Burkett Corporation

The number of units that must be sold in order to achieve a target pretax income of $165,900 is:

= 54,042 units.

Explanation:

a) Data and Calculations:

                                          Total            Per Unit

Sales (47,000 units)         $987,000     $21.00

Costs:

Direct materials               $209,400

Direct labor                         241,300

Variable factory overhead 151,300

Variable marketing costs    51,300

Total variable costs       $653,300      $13.90

Contribution margin      $333,700        $7.10 ($21 - $13.90)

Fixed factory overhead   106,500  

Fixed marketing costs      111,300

Total fixed costs            $217,800

Pretax income $115,900 165,900

To achieve a target profit of $165,900, units that must be sold

= (Total fixed costs + Target profit)/Contribution margin per unit

= ($217,800 + $165,900)/$7.10

= $383,700/$7.10

= 54,042 units

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )