Question
Company is experiencing erratic sales of its product - a special battery.This month it generated a loss of $36,000. Company sold 16,000 units for the
Company is experiencing erratic sales of its product - a special battery.This month it generated a loss of $36,000. Company sold 16,000 units for the month and has the following account balances for the income statement:
Sales (16,000 units)$480,000
Variable expenses$336,000
Fixed expenses$180,000
a.How many units need to be sold for the company to earn income before tax of $90,000?
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Management Accounting Information for creating and managing value
Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne
8th edition
9781760420413 , 978-1760420406
