Question
The DesMaris Company had the following income statement for the month of November 2016: DesMaris Company Income Statement For the Month of November 2016 Sales
- The DesMaris Company had the following income statement for the month of November 2016:
DesMaris Company Income Statement
For the Month of November 2016
| Sales ($60 10,000) | $600,000 | |||||
| Cost of goods sold: |
| |||||
| Direct materials ($12 10,000) | $120,000 |
| ||||
| Direct labor ($9 10,000) | 90,000 |
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| Variable factory overhead ($7.50 10,000) | 75,000 |
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| Fixed factory overhead | 120,000 | 405,000 | ||||
| Gross profit | $195,000 | |||||
| Selling and administrative expenses: |
| |||||
| Variable ($1.50 10,000) | $ 15,000 |
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| Fixed | 90,000 | 105,000 | ||||
| Operating income | $90,000 | |||||
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| What is the sales volume required to earn an operating profit of $9,000? |
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- 3,300 units
- 10,000 units
- 4,300 units
- 7,300 units
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Survey of Accounting
Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor
4th edition
77862376, 978-0077862374
