3.5

Required If the company's tax rate is 30%, how many cookbooks must be sold to generate $189,000 in net income? 3.5 (LO 2) Target operating income Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $25 each, and her variable costs are $15 per basket. She incurs $12,000 in fixed costs each year. Required a. How many baskets will Marissa have to sell this year if she wants to earn $30,000 in operating income? b. Last year, Marissa sold 4,000 baskets, and she believes that demand this year will be stable at 4,000 baskets. What actions could Marissa take if she wants to earn $30,000 in operating income by selling only 4,000 baskets this year? Be specific. 3.6 (LO 2) Target net income Manzoni Machine Works produces soft serve ice cream freezers. The freezers sell for $18,000, and variable costs total $12,300 per unit. Manzoni incurs $3,500,000 in fixed costs during the year. The company's tax rate is 25%. Required How many freezers must Manzoni sell to generate net income of $7,635,000