2. Accounting
3. gigi inc has a targeted operating income of 518000 for...

# Question: gigi inc has a targeted operating income of 518000 for...

###### Question details

GiGi Inc. has a targeted operating income of $518,000 for next year. They have set a selling price at$40.50 each. The variable cost per item is $12.50. The fixed costs are$182,000.

What is the contribution margin per unit?

What is the break even in units?

How many units need to be sold to reach the targeted operating income?