Homework Answers
Formula for operating income :
Operating Income = Revenues - Variable Costs - Fixed costs
Now, the target operating income is $60,000 after tax of 40%
Let X be the number of units sold to earn target operating income (Target OI)
Target OI = 100 X - 40 X - $12,000
$60,000 = 60 X - $12,000
$72,000 = 60 X
X = $1,200
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Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable...
Questions 8-10 are based on the following revenue and cost structure.: Selling price per unit: Variable...
Questions 8-10 are based on the following revenue and cost structure.: Selling price per unit: Variable cost per unit: S 100 S 40 S12,000 40% Total fixed costs: ax rate on operating income: How much sales revenues must be achieved to earn a target net income of $72,000? a. $72,000 b. S100,000 c.$132,000 d. $220,000 10.
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Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable cost per unit: $ 100 S 40 $12,000 40% Total fixed costs: Tax rate on operating income: 8. How many units must be sold to breakeven? a. 150 b. 200 c. 250 d. 400
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable...
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable cost per unit: S 100 S 40 $12,000 40% Total fixed costs: ax rate on operating income: CPA Adapted] Theta Company sells product A at a selling price of S40 per unit. Theta's cost per unit based on the full capacity of 500,000 units is as follows: S 6 Direct materials Direct labour Indirect manufacturing (60% of which is fixed) 10 S19 A one-time-only...
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Questions 8-10 are based on the following revenue and cost structure.: Selling price per unit: Variable cost per unit: S 100 S 40 S12,000 40% Total fixed costs: ax rate on operating income: How much sales revenues must be achieved to earn a target net income of $72,000? a. $72,000 b. S100,000 c.$132,000 d. $220,000 10.
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable cost per unit: $ 100 S 40 $12,000 40% Total fixed costs: Tax rate on operating income: 8. How many units must be sold to breakeven? a. 150 b. 200 c. 250 d. 400
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable cost per unit: S 100 S 40 $12,000 40% Total fixed costs: ax rate on operating income: CPA Adapted] Theta Company sells product A at a selling price of S40 per unit. Theta's cost per unit based on the full capacity of 500,000 units is as follows: S 6 Direct materials Direct labour Indirect manufacturing (60% of which is fixed) 10 S19 A one-time-only...
If the selling price per unit is $71, variable expenses per unit are $49, target operating income is $36,000, and total fixed expenses are $24,000, how many units must be sold to reach the target operating income? (Round the final answer up to the nearest unit.) OA SOS OB 1,637 Oc1091 OD. 2,728
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A company provided the following data: Selling price per unit Variable cost per unit Total fixed costs 400,000 How many units must be sold to earn a profit of $40,000? a. 20,000 b. 23,333 c. 2,000 Od. 8,500 e. 22,000
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Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $3.00 per pan. The variable cost per pan is as follows: Direct materials $0.31 Direct labor Variable factory overhead 0.55 0.70 0.17 Variable selling expense Fixed manufacturing cost totals $250,789 per year. Administrative cost (all fixed) totals $34,199. Required: 1. Compute the number of pans that must be sold for Werner to...
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