Reid Recreation Products sells the Amazing Foam Frisbee for $12. The variable cost per unit is $3;
Question:
Reid Recreation Products sells the Amazing Foam Frisbee for $12. The variable cost per unit is $3; fixed costs are $36,000 per month.
Required
a. What is the annual breakeven point in units? In sales dollars?
b. How many frisbees must Reid sell to earn $18,000 in operating income?
c. What operating income must Reid earn to realize net income of $16,200, assuming that the company is in the 40% tax bracket?
d. How many frisbees must Reid sell to earn $16,200 in net income?
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a 12x 3x 432000 a 0 9x 432000 x 48000 frisbees to br...View the full answer
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