Question

Reid Recreation Products sells the Amazing Foam Frisbee for $12. The variable cost per unit is $3; fixed costs are $36,000 per month.

Required

a. What is the annual breakeven point in units? In sales dollars?
b. How many frisbees must Reid sell to earn $18,000 in operating income?
c. What operating income must Reid earn to realize net income of $16,200, assuming that the company is in the 40% tax bracket?
d. How many frisbees must Reid sell to earn $16,200 in net income?



$1.99
Sales7
Views286
Comments0
  • CreatedFebruary 21, 2014
  • Files Included
Post your question
5000