Question
Use the following to answer questions A-C: Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows:
Use the following to answer questions A-C: Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: Selling Price Variable Manufacturing Costs $47 per unit $21 per unit Variable Selling & Administrative Expenses $6 per unit Fixed Manufacturing Overhead $238,000 per year Fixed Selling & Administrative Expenses $337,000 per year SHOW ALL WORK A. What is the break-even point in units per year? B. How many units need to be sold to earn an annual net income equal to 10% of sales? C. In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year? Use the following to answer questions A-C: Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: Selling Price Variable Manufacturing Costs $47 per unit $21 per unit Variable Selling & Administrative Expenses $6 per unit Fixed Manufacturing Overhead $238,000 per year Fixed Selling & Administrative Expenses $337,000 per year SHOW ALL WORK A. What is the break-even point in units per year? B. How many units need to be sold to earn an annual net income equal to 10% of sales? C. In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year
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