Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Josh Ward is a young entrepreneur preparing to start a company that will sell floating lounge chairs for use in private pools. As part of

Josh Ward is a young entrepreneur preparing to start a company that will sell floating lounge chairs for use in private pools. As part of a loan package, the bank has asked him to prepare a business plan that includes a breakeven analysis. The lounge chairs will sell for $63 each and variable costs per unit are expected to be $45. Josh anticipates incurring $369,000 in fixed costs per year.

1) If Josh wants to generate annual operating income of $171,900, how many lounge chairs must he sell?

2)Assuming the companys tax rate is 30%, how many lounge chairs must the company sell to generate annual net income of $134,883?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image_2

Step: 3

blur-text-image_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

The Concept And Objectives Of Quality Auditing ISO 9001Total Quality Management

Authors: Mahmoud Fadhel Idan

1st Edition

6202795158, 978-6202795159

More Books

Students also viewed these Accounting questions

Question

Describe the characteristics of preferred shares.

Answered: 1 week ago