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How were the highlighted numbers found? How were the highlighted numbers found and this chart graphed? 21. A paper manufacturer would like to earn an

How were the highlighted numbers found?

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How were the highlighted numbers found and this chart graphed?

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21. A paper manufacturer would like to earn an operating income of $55,006 in 20Y6. In 2015, the company had fixed costs of $7,500, but expects this number to increase by 10%. Finished goods sell for $10 each and have variable costs of $2. Determine the sales in units and dollars in order to earn the target profit. Round answers to the nearest whole number. Fixed Costs in 2046 = $8,250 = $7,500 1.10 Sales (units) = 7,907 units = ($8,250 + $55,006) = $8 Sales (dollars) = $79,070 = ($8,250 + $55,006) = 80%, or 7,907 units * $10 per unit 22. Shooz manufactures finished goods for a variable cost of $30 each and fixed costs of $15,000. The company sells the goods for $80 each. Prepare a cost-volume-profit chart for the company. Break-Even Point (units) = 300 units = $15,000 = $50 Break-Even Point (sales) = $24,000 = $15,000 = 62.5%, or 300 units * $80 per unit 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Total Cost -Total Sales 0 100 200 300 400 500

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