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You are currently trying to decide between two cost structures for your business: one that has a greater proportion of short - term fixed costs
You are currently trying to decide between two cost structures for your business: one that has a greater proportion of shortterm fixed
costs and another that is more heavily weighted to variable costs. Estimated revenue and cost data for each alternative are as follows:
Required:
What sales volume, in units, is needed for the total costs in each coststructure alternative to be the same?
Suppose your profit goal for the coming year is of sales Le operating profitsales What sales level in units is needed
under each alternative to achieve this goal?
Suppose again that your profit goal for the coming year is of sales. What sales volume in dollars is needed under each
alternative to achieve this goal?
Complete this question by entering your answers in the tabs below.
Required
What sales volume, in units, is needed for the total costs in each coststructure alternative to be the same?
Sales volume in units
Required
Suppose your profit goal for the coming year is of sales ie operating profit sales What sales level in units is
needed under each alternative to achieve this goal?
Required
Suppose again that your profit goal for the coming year is of sales. What sales volume in dollars is needed under each
alternative to achieve this goal?
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