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Anyone to help with this? Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants
Anyone to help with this?
Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 86,000, 97,000, and 108,000 units. Variable costs Manufacturing $7 per unit Administrative $4 per unit Selling $2 per unit Fixed costs Manufacturing $130,000 Administrative $79,000 APPLIANCE POSSIBLE INC. Flexible Production Cost Budget ty Level luction Levels 86.000 97,000 108,000 ble Costs ufacturing $ 602,000 i $ 679,000 i $ 756.000 i linistrative 344,000 i 388,000 i 432,000 i ng 172,000 i 194,000 i 216,000 i Variable Costs 1,118,000 i 1,261,000 i 1,404,000 i Costs ufacturing 130,000 i 130.000 i 130,000 i linistrative 79,000 i 79,000 i 79,000 i Fixed Costs 209,000 i 209,000 i 209,000 i Costs $ 1,327,000 $ 1,470,000 i $ 1,613,000 i X Your answer is incorrect. If AP sells the toaster ovens for $19 each, how many units will it have to sell to make a profit of $443,200 before taxes? Units to be sold 430,600Step by Step Solution
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