Pine Cabinet Company sells cabinets to both residential and commercial customers. The following financial information pertains to the company's business operations: <\/p>
Sales price per cabinet $ 400 <\/p>
Variable expenses $ 295 <\/p>
Fixed expenses $ 834,074 <\/p>
For the year ended December 31, 2020, Pine Cabinet Company produced and sold the following number of cabinets: 9,945 <\/p>
Required: <\/p>
1. Calculate the number of cabinets Pine Cabinet Company would need to sell to break even for the 2020 year. (4marks)<\/p>
2. Calculate the number of cabinets Pine Cabinet Company would need to sell to generate net income of $50,000 for the 2020 year. (4marks)<\/p>
3. The owner thinks that Pine Cabinet Company could sell 10,050 cabinets if $17,000 is spent on an advertising campaign. Prepare 2 contribution format income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. Would you recommend that the company do as the owner suggests? (7marks)<\/p>", "transcribed_text": "", "related_book": { "title": "Principles Of Finance", "isbn": "979-8439388899", "edition": "1st Edition", "authors": "Julie Dahlquist, Rainford Knight", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg", "uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899", "see_more_uri": "" }, "free_related_book": { "isbn": "1138210587", "uri": "\/textbooks\/rethinking-culture-embodied-cognition-and-the-origin-of-culture-in-organizations-1st-edition-9781138210585-9781315454955", "name": "Rethinking Culture Embodied Cognition And The Origin Of Culture In Organizations", "edition": "1st\u00a0Edition" }, "question_posted": "2024-06-29 02:05:35", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/1.2-2.4-x-m-sheet-of-plywood-is-temporarily-held", "description": "A 1.2 2.4-\u00c3 m sheet of plywood is temporarily held by nails at D and E and by two wooden braces nailed at A, B, and C. Wind is blowing on the hidden face of the plywood sheet, and it is...", "stars": 3 }, { "url": "\/study-help\/biostatistics\/use-the-variable-selection-summary-output-given-in-table-937-1981433", "description": "Use the variable selection summary output given in Table 9.37 for 10 screening explanatory variables on a data set having ???? = 70 observations to answer the following: (a) Which of the 10...", "stars": 3 }, { "url": "\/the-public-safety-office-at-millennium-college-maintains-a-list", "description": "The Public Safety office at Millennium College maintains a list of parking tickets issued to vehicles parked illegally on the campus. Table 4-6 shows a portion of this list for the fall semester....", "stars": 3 }, { "url": "\/study-help\/questions\/in-sql-which-command-is-used-to-remove-a-9858901", "description": "In SQL , which command is used to remove a table from the database? A . DELETE TABLE B . DROP TABLE C . REMOVE TABLE D . TRUNCATE TABLE", "stars": 3 }, { "url": "\/study-help\/questions\/suppose-fx7x28x12-write-an-expression-in-terms-of-x-and-3215657", "description": "Suppose f(x)=7x2+8x-12. Write an expression in terms of x and h that represents the average rate of change of f over any interval of length h.", "stars": 3 }, { "url": "\/study-help\/questions\/a-construction-company-in-london-regularly-participates-in-the-bidding-1005363", "description": "A construction company in London regularly participates in the bidding process for large scale construction projects in the capital. Over the last few years the company has enjoyed a stable success...", "stars": 3 }, { "url": "\/study-help\/questions\/the-average-number-of-arrivals-at-a-box-office-is-1005439", "description": "The average number of arrivals at a box office is 10 customers per hour. Only 1 customer can be served at the box office at any given time. It takes on average 3.5 minutes for a customer to be...", "stars": 3 }, { "url": "\/study-help\/questions\/explain-the-function-of-human-heart-and-draw-a-clear-8005206", "description": "Explain the function of human heart and draw a clear diagram of human heart along with the proper labelling of each part.", "stars": 3 }, { "url": "\/study-help\/questions\/how-is-the-process-of-neurulation-takes-plain-in-mammals-8005207", "description": "How is the process of neurulation takes plain in mammals ? Elucidate with the help of suitable diagram.", "stars": 3 }, { "url": "\/study-help\/questions\/what-are-the-approaches-to-hrm-8005208", "description": "What are the APPROACHES TO HRM?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/figure-2-stylers-inc-price-costs-atc-mc-avc-p58-4445209", "next": "\/study-help\/questions\/major-electronics-is-a-multiplant-assembler-of-computers-and-computer-4445211" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Pine Cabinet Company sells cabinets to both residential and commercial customers. The", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/pine-cabinet-company-sells-cabinets-to-both-residential-and-commercial-4445210" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }} }