Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Thach LLC has provided the following contribution format income statement for the sales of 10,000 units: Answer the following two independent questions related to the
Thach LLC has provided the following contribution format income statement for the sales of 10,000 units:
Answer the following two independent questions related to the data above for Thach LLC: |
1) Estimate how many units must be sold to achieve a target profit of $50,000. |
2) If the number of units sold decreases by 2,000 units, sales price increases $3 per unit, |
variable costs increase $1 per unit and fixed costs decrease $7,000, what would be the resulting net operating income? |
Please show work
$ Sales Variable costs Contribution margin Fixed costs Net operating income 650,000 570,000 80,000 62,000 18,000 $ $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started