Reid Recreation Products sells the Amazing Foam Frisbee for $8. The variable cost per unit is $3;

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Reid Recreation Products sells the Amazing Foam Frisbee for $8. The variable cost per unit is $3; fixed costs are $28,000 per month.

Required

a. What is the monthly breakeven point in units? In sales dollars?

b. How many frisbees must Reid sell to earn $40,000 in monthly operating income?

c. What operating income must Reid earn to realize monthly net income of $36,000, assuming that the company is in the 25% tax bracket?

d. How many frisbees must Reid sell to earn $36,000 in monthly net income?

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Managerial Accounting

ISBN: 9781119577669

4th Edition

Authors: Charles E. Davis, Elizabeth Davis

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Question Posted: May 04, 2021 02:34 AM

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Reid Recreation Products sells the Amazing Foam Frisbee for $8. The variable cost per unit is $3;

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a 8x 3x 28000 0 5x 28000 x 5600 frisbe...View the full answer

Managerial Accounting

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