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2. 1. Functional Design Furniture Company sells a product for $80 per unit and incurs $55 of variable costs per unit sold. If fixed
2. 1. Functional Design Furniture Company sells a product for $80 per unit and incurs $55 of variable costs per unit sold. If fixed costs are $8,500 per month, what is the break-even sales volume in terms of dollars? a. $340 b. $5,037 c. $12,364 d. $27,200 c. $680,000 Greenside Up Company has monthly fixed costs of $11,700 and a 25% contribution margin ratio. Management has set a goal of earning a monthly after-tax income of $8,000. In order to have an $8,000 net income, the company must carn a pretax target income of $12,000 and pay $4,000 in taxes. What level of sales is necessary to produce the target after-tax net income? (hint: pg. 714) a. $30,800. b. $58,800. c. $78,800. d. $94,800. c. $126,800.
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