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Ch 3-Grading HW

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Exercise 3-31 and 3-32 (Algo) (LO 3-1)

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Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics.

Sales price	$	15	per unit
Variable costs		3	per unit
Fixed costs		45,000	per month

Exercise 3-31 (Algo) Basic Decision Analysis Using CVP (LO 3-1)

Required:

a. What number must Warner sell per month to break even?

b. What number must Warner sell per month to make an operating profit of $39,000?

Skip to main content

Ch 3-Grading HW

Answer Saved

Help opens in a new window

Item 2

Part 1 of 2

8.75 points

Item 2

Required information

Exercise 3-31 and 3-32 (Algo) (LO 3-1)

Skip to question

[The following information applies to the questions displayed below.]

Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics.

Sales price	$	15	per unit
Variable costs		3	per unit
Fixed costs		45,000	per month

Exercise 3-31 (Algo) Basic Decision Analysis Using CVP (LO 3-1)

Required:

a. What number must Warner sell per month to break even?

b. What number must Warner sell per month to make an operating profit of $39,000?

Question 2 linked to 3 of 4 Total 2 3 of 4

a.	Break-even sales in units
b.	Number of units to be sold