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time is 15 mins c) [5] a. Compute the following. 1. Presto Corp. had total variable costs of $180,000, total fixed costs of $110,000, and
time is 15 mins
c) [5] a. Compute the following. 1. Presto Corp. had total variable costs of $180,000, total fixed costs of $110,000, and total revenues of $300,000. Compute the required sales in dollars to break even. [1] ii. Rice Company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $163,800. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. [2] ii. For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Management's net income goal is $75,000. Compute the 3 required sales in dollars needed to achieve management's target net income of $75,000. (Use the contribution margin approach) Step by Step Solution
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