Question
You are given the following data on a companys three products: The company has annual fixed costs of $220,000. Assuming a consistent sales mix, if
You are given the following data on a companys three products:
The company has annual fixed costs of $220,000.
| Assuming a consistent sales mix, if the company wishes to earn net income of $300,000, how many units of Minis must be sold? | Answer 1Choose...810 units310 units775 units720 units$196,000420 units$90,000325 units480 units620 units$99,000840 units$54,000740 units$96,0001,000 units$82,500300 units$70,000$60,000$85,500320 units$50,000$80,000550 units$148,500$171,500 |
| Assuming a consistent sales mix, how many units of Minis must the company sell to break even? | Answer 2Choose...810 units310 units775 units720 units$196,000420 units$90,000325 units480 units620 units$99,000840 units$54,000740 units$96,0001,000 units$82,500300 units$70,000$60,000$85,500320 units$50,000$80,000550 units$148,500$171,500 |
| Compute the margin of safety in dollars. | Answer 3Choose...810 units310 units775 units720 units$196,000420 units$90,000325 units480 units620 units$99,000840 units$54,000740 units$96,0001,000 units$82,500300 units$70,000$60,000$85,500320 units$50,000$80,000550 units$148,500$171,500 |
| Compute the companys expected profit (net income) for the upcoming year. |
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Accounting Information Systems
Authors: Vernon Richardson, Chengyee Chang, Rod Smith
2nd edition
978-1260153156
