Question
I know the answers but am not sure how to get to them. If someone can please show work on how to get to these
I know the answers but am not sure how to get to them. If someone can please show work on how to get to these answers it would be greatly appreciated
1) During March, Adams company had sales of 5,000,000, variable expenses of 3,000,000, and fixed expenses of 1,500,000. Assume that cost behavior and unit selling price remain uncahnged during April. In order for the company to realize net operating income of 300,000 for April, sales would have to be:
Answer: 4,500,000
2) Assume that a firm can sell 10,000 units of a product and that the variable expenses are $2 per unit. Fixed expenses are $20,000, and the firm wishes to earn a net income of $10,000. What price must the firm be able to charge?
Answer: $5 per unit
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