Question
Water Rockets Company gave the following information about the two products it sells: Jet Boats Ski Boats unit selling price $12.000$ $30.000$ variable cost per
Water Rockets Company gave the following information about the two products it sells:
Jet Boats | Ski Boats | |
unit selling price | $12.000$ | $30.000$ |
variable cost per unit | $4,900 | $ 16,000 |
Annual fixed costs are $310,000$.
Assuming the company sells five jet boats for every two ski boats sold, how many units would have to be sold for the Water Rockets to be at par?
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
3rd Canadian edition
978-1118727737, 1118727738, 978-1118033890
