Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the...

  

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Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 87,000, 102,000, and 117,000 units. Variable costs Manufacturing Administrative Selling Fixed costs Manufacturing Administrative $7 per unit $3 per unit $2 per unit $138,000 $75,000 If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $319,000 before taxes? Units to be sold Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 87,000, 102,000, and 117,000 units. Variable costs Manufacturing Administrative Selling Fixed costs Manufacturing Administrative $7 per unit $3 per unit $2 per unit $138,000 $75,000 If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $319,000 before taxes? Units to be sold

Answer rating: 100% (QA)

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