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27. Wang Co. manufactures and sells a single product that sells for $450 per unit; variable...

27. Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Management targets an annual pre-tax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income. 27) ______ A) 6,650. B) 7,500. C) 10,694. D) 4,444. E) 11,750.

42. An advantage of common-size statements is that they show patterns in data across periods. True or False

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Answer #1

27.

Unit sales needed = (Fixed costs+Target profit)/Contribution margin per unit

= (800,000+1,125,000)/(450-270)

= 10,694

Option C is the answer

42.

True

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