Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tabitha manufactures a product that sells very well. The capacity of her facility is 2 4 9 , 0 0 0 units per year. The

Tabitha manufactures a product that sells very well. The capacity of her facility is 249,000 units per year. The fixed costs are $107,000 per year and the variable costs are $10 per unit. The product currently sells for $19.
a. What total revenue is required for a net income of $335,000 per year?
Round to the nearest cent
b. If sales were at 75% of the capacity and the variable costs decreased by 25%, what would be the net income per year?
Round to the nearest cent

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

Step: 3

blur-text-image

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

Essentials Of Managerial Accounting

Authors: Kurt Heisinger

1st Edition

0618436693, 978-0618436699

More Books

Students also viewed these Accounting questions

Question

5 What are the ongoing challenges for HRM?

Answered: 1 week ago

Question

4 What typifies the first and second waves of HRM?

Answered: 1 week ago