Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 9 ABC Company produces toy koalas and toy bears. Fixed costs are $2,820,000 per year. Sales revenue and variable costs per unit are as

image text in transcribed

QUESTION 9 ABC Company produces toy koalas and toy bears. Fixed costs are $2,820,000 per year. Sales revenue and variable costs per unit are as follow (in $): Koalas Bears 20 25 Sales price Variable costs 8 10 1. Suppose the company currently sells 60,000 koalas per year and 140,000 bears per year. Assuming the sales mix stays constant, how many koalas and bears must the company sell to break even per year? (2 marks) and bears must the company sell to make an operating profit of 2. How many koalas $282,000? (2 marks) 3. What is the profit if the company sells 300,000 toys (assuming the same sales mix)? (1 mark) (use the sign $ for dollars Do not use commas for quantities, e.g. 1000 and not 1,000. Use $ for values, e.g. $1000 and not $1,000 or just 1000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Report Chavarria Dinne And Lamey LLC Contract Deliverables Office Of Inspector U.S Department Of The Interior

Authors: United States Department Of The Interior

1st Edition

1511678526, 978-1511678520

More Books

Students also viewed these Accounting questions

Question

identify current issues relating to equal pay in organisations

Answered: 1 week ago