Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 13, 2024

A company sells one product with a variable cost ratio of 60%. Fixed costs are $200,000 per year. What is the sales volume (in dollars)

A company sells one product with a variable cost ratio of 60%. Fixed costs are $200,000 per year. What is the sales volume (in dollars) required to earn target operating income of $400,000 per year?

(Please give step by step explanation)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Heres how to calculate the sales volume required to earn a target operating income of 400000 per yea... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions

Question

★★★★★

New Tech Limited manufactures and sells wireless phone chargers. The product sells for $30 per unit and has a CM ratio of 503 . The company's fixed expenses are $450,000 per year. Required: 1. What...

Answered: 1 week ago

Question

★★★★★

The Company Lalo Company, headquartered in Vaduz, is a company listed in Amsterdam, Paris and Zurich. It is the third largest small home appliance manufacturer in Europe. The company was founded in...

Answered: 1 week ago

Question

★★★★★

Karges Coffee Inc. manufactures a line of single-cup brewing machines for home and office use that brew a cup of coffee, tea, or hot chocolate in less than a minute. The machines use specially...

Answered: 1 week ago

Question

★★★★★

Practice Problem 6: We-B-Busy, Inc. uses job costing and a predetermined overhead rate based on machine hours (MH). The firm estimated that it would use $240,000 of MOH and 7,500 MH this year. Data...

Answered: 1 week ago

Question

★★★★★

Kaminski et al. (1992) present data on the number of orders per truck at a distribution center. Some of this data is shown in Table 6E.19. Set up a c chart for the number of orders per truck. Is the...

Answered: 1 week ago

Question

★★★★★

Robert, age 35, has accumulated $36,000 in his traditional IRA. He recently married and would like to withdraw $25,000 from his IRA for a down payment on their first house. Write a letter to Robert...

Answered: 1 week ago

Question

★★★★★

b. Is it an undergraduate or graduate level course?

Answered: 1 week ago

Question

★★★★★

An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this...

Answered: 1 week ago

Question

★★★★★

Formula Approach Only- No Excel or Calculator The Beachard Company's EPS was $6.80 in 2021, up from $3.34 in 2016. The company pays out 30% of its earnings as dividends, and its comimcel stock sells...

Answered: 1 week ago

Question

★★★★★

5. [10 points] Javier plans to make and sell his own all-natural shampoo. The graph below shows the marginal cost M C' (q), in dollars per liter, of (1 liters of shampoo. In order to start making...

Answered: 1 week ago

Question

★★★★★

The probability of event "A" is 50%. The probability of event "B" is 20%. "A" and "B" are two independent events. What is the probability of observing "A" and "B"?

Answered: 1 week ago

Question

★★★★★

Some statements are not considered hearsay because these statements are not being offered to prove the truth of the matter asserted in the statements. Thus, you must always ask yourself what is being...

Answered: 1 week ago

Question

★★★★★

21. Data: S0 = 100; X = 110; 1 + r = 1.1. The two possibilities for ST are 150 and 80. Calculate the value of a call option on the stock with an exercise price of 110. (Do not use continuous...

Answered: 1 week ago

Question

★★★★★

Car expenses using logbook and expense data Rory derives business income from a retail cosmetics store. On 1 October 2023, Rory bought a Mercedes for $38,340. Its effective life is eight years. Rory...

Answered: 1 week ago

Question

★★★★★

An analyst for Bloom Ltd, gathered the following information with regards to futures contract: Current spot-market price of R60 Risk-free interest rate of 8.87% per annum The six-month future...

Answered: 1 week ago

Question

★★★★★

In java please Create a new class in your Lab 1 project and write a program that asks the user to enter the height, width, and depth of a box (in inches), and calculates the volume of the box in...

Answered: 1 week ago

Question

★★★★★

Evaluate each logarithm to four decimal places. log 0.257

Answered: 1 week ago

Question

★★★★★

=+created using the same application framework.

Answered: 1 week ago

Question

★★★★★

How many of these do you use each week?

Answered: 1 week ago

Question

★★★★★

=+15.2. List the benefits of software reuse and explain why the expected lifetime of the software should be considered when planning reuse.

Answered: 1 week ago

Previous Question Next Question