A company wants to average $1,000,000 operating income /year from its new product line - the line
Fantastic news! We've Found the answer you've been seeking!
Question:
A company wants to average $1,000,000 operating income /year from its new product line - the line is expected to have a market life of 4 years. HOW MANY UNITS DO THEY NEED TO SELL IN TOTAL OVER THE 4 YEARS TO REACH THIS $1,000,000 ANNUAL TARGET GIVEN THE FOLLOWING ? ...... Over the product's 4 year life, managers expect the unit selling price to average $90 per unit and its variable costs to average $48 per unit. Upfront R&D costs are expected to total $5,000,000, with average annual fixed costs relevant to the project to total $2,000,000 per year.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Posted Date: