eBookAsk

Print

References

Check my workCheck My Work button is now disabled

Item 10

Item 10 Part 3 of 6 1 points

Required information

Learning Objective 05-C2: Describe several applications of cost-volume-profit analysis.

Cost-volume-profit analysis can be used to predict what can happen under alternative strategies concerning sales volume, selling prices, variable costs, or fixed costs. Applications include what-if analysis, computing sales for a target income, and break-even analysis.

Computing Income from Sales and Costs Dollar Sales

Play Video

Knowledge Check 01 CompuTop Company sells toy laptop computers for $30 each. If the variable cost for each laptop is $20 and fixed costs total $25,000, how much sales in dollars must it sell to generate a target income of $66,667? (Round your intermediate answers to 1 decimal place and your final answer to a whole dollar.)

• $7,500

• $9,167

• $225,225

• $275,276

rev: 10_11_2019_QC_CS-185767