Johansen Company had $210,000 of operating income in 2022, when the selling price per unit was $150,
Question:
Johansen Company had $210,000 of operating income in 2022, when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per-unit data and total fixed costs to remain the same in 2023. The president of Johansen Company is under pressure from shareholders to increase operating income by $52,000 in 2023.
Instructions
a. Calculate the number of units sold in 2022.
b. Calculate the number of units that would have to be sold in 2023 to reach the shareholders’ desired operating income.
c. Assume that Johansen Company sells the same number of units in 2023 as it did in 2022. What would the selling price have to be in order to reach the shareholders’ desired operating income?
Step by Step Answer:
a b c 150Q 90Q 5...View the full answer
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119731825
6th Canadian Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
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