Question
Front Porch, Inc. makes rocking chairs and side tables in a variety of vibrant colors.They typically sell 2 rocking chairs for everyone 1 side table.Information
Front Porch, Inc. makes rocking chairs and side tables in a variety of vibrant colors.They typically sell 2 rocking chairs for everyone 1 side table.Information about the sales price and variable cost of each is below.The fixedcosts for the year are $160,000.Assuming the 2:1 ratio of chairs to tables stays the same, how many rocking chairs and side tables would Front Porch need to sell, in order to earn an operating income of $200,000?
Rocking chairs Side tables
Sales price $300 $120
Variable cost $165 $70
a. 2,250 rocking chairs and 1,125 side tables
b. 1,000 rocking chairs and 500 side tables
c. 1,250 rocking chairs and 625 side tables
d. 2,000 rocking chairs and 1,000 side tables
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