Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The DesMaris Company had the following income statement for the month of November 2018: DesMaris Company Income Statement For the Month of November 2018 Sales
The DesMaris Company had the following income statement for the month of November 2018:
DesMaris Company Income Statement For the Month of November 2018 | ||
Sales ($60 10,000) | $600,000 | |
Cost of goods sold: | ||
Direct materials ($12 10,000) | $120,000 | |
Direct labor ($9 10,000) | 90,000 | |
Variable factory overhead ($7.50 10,000) | 75,000 | |
Fixed factory overhead | 120,000 | 405,000 |
Gross profit | $195,000 | |
Selling and administrative expenses: | ||
Variable ($1.50 10,000) | $ 15,000 | |
Fixed | 90,000 | 105,000 |
Operating income | $90,000 |
What is the sales volume required to earn an operating profit of $9,000?
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