If a corporation desires to earn a target net income of $40,000 and the selling price per unit is $30, unit variable cost is $24, and the total fixed costs are $160,000, then what is the number of units the company must sell to earn its target net income?

Net Target Income 40,000
Total Fixed Costs 160,000
Contribution Margin Needed 200,000
Contributio Margin per unit 30 - 24 = 6
so units needed = 200,000 / 6 = 33333 units

Check


Total Income @ 3333 units 999,990
Total Varibale Cost 799,992
Contribution 199,998 (Due to rounding)
Fixed Costs 160,000
Net Income 39,998

This is the best I can do since the answer for number of units was recurring and I rounded it

The answer is 33,333.33 units.

So since you can't sell a fraction unit, you will have to sell 33,334 to go over $40,000 since no amount will actually get your $40,000 on the dot.