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Tisdale Company Reported the Following Results from Sales of 5,000 $200,000 \$ 200,000

Question 42

Multiple Choice

Tisdale Company reported the following results from sales of 5,000 units of Product A for June:
Sales                                                                         $200,000 \$ 200,000
Variable costs                                                         (120,000)
Fixed costs                                                            (60,000) \underline{(60,000) }
Operating income                                                  $20,000\underline{\$20,000}


Assume that Tisdale increases the selling price of Product A by 10 percent in July.How many units of Product A would have to be sold in July to generate an operating income of $20,000?


A) 4,000
B) 4,300
C) 4,545
D) 5,000

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