The number of units that Starling Co. sold was 11200
Explanation:
Given -
Operating income = $28,800
Fixed cost = $38,400
Selling price of one unit = $12
Variable cost = $12
Number of units sold, n = ?
Contribution margin per unit = $18 - $12
= $6
[tex]n = \frac{operating income + fixed cost}{contribution margin per unit}[/tex]
[tex]n = \frac{28800 + 38400}{6} \\\\n = \frac{67200}{6} \\\\n = 11200[/tex]
Therefore, number of units that Starling Co. sold was 11200
