If variable costs per unit are 70% of sales, fixed costs are $290,000 and target net income is $70,000, required sales are $1,200,000.

a. True

b. False

True.

To solve and make sure your answer is accurate:

Take the required sales of $1,200,000 and multiply it by. 70 (70%)

Variable costs per unit are $840,000 of sales.

Next, subtract the variable costs per unit of $840,000 from the required sales of $1,200,000.

This leaves you with $360,000 then, we will subtract the fixed costs of $290,000.

Which leaves the target net income of $70,000.