Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable...

 

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Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable Costs $ 6.20 $ 1.55 Contribution Margin $ 4.65 Fixed Costs $ 3.10 Operating Income $ 1.55 Question a. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals. b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target? Note: Round your answer to the nearest whole unit number. c. Pawxie Vibe predicts that it can cut fixed advertising expenses by $10,700, resulting in a reduction in unit sales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note: Round your answer to 2 decimals. Answer Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable Costs $ 6.20 $ 1.55 Contribution Margin $ 4.65 Fixed Costs $ 3.10 Operating Income $ 1.55 Question a. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals. b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target? Note: Round your answer to the nearest whole unit number. c. Pawxie Vibe predicts that it can cut fixed advertising expenses by $10,700, resulting in a reduction in unit sales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note: Round your answer to 2 decimals. Answer

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Answer Pawxie Vibe Company Analysis We can use the provided information to solve for Pawxie Vibes net income target sales units and operating income u... View the full answer