How many units must the company sell to attain

Assignment Help Managerial Accounting
Reference no: EM132657359

APPLY THE CONCEPTS:

Target income (number of units sold)

Suppose a business has pricing and cost information as follows::

Selling Price per Unit$10.00

Variable Cost per Unit$2.00

Total Fixed Cost$400

Problem 1: For the upcoming period, the company wishes to generate operating income of $720. Given the cost and pricing structure for the company's product, how many units must the company sell to attain its target income?

Reference no: EM132657359

Questions Cloud

Security measures you interact with on regular basis : Select at least two security measures you interact with on a regular basis. Identify the level of importance of the security measure
What is byron margin of safety in sales and in units : What is Byron's margin of safety in sales and in units when Byron sells 730 units? CVP analysis is used to analyze the effects of changes in selling prices
Find what is the margin of safety in terms of units : Find what is the margin of safety in terms of both units and sales revenue? Round your answers to two decimal places, if necessary
Political influences can affect decisions of judges : What legal and political influences can affect the decisions of judges? How does the judiciary play a part in policymaking?
How many units must the company sell to attain : Given the cost and pricing structure for the company's product, how many units must the company sell to attain its target income?
Demonstrate what margin of safety is : Demonstrate what margin of safety is. Units sold or revenue earned above and beyond the break-even point contributes to the margin of safety for a company.
Maximum possible subscription price-the clifford corporation : The Clifford Corporation has announced a rights offer to raise $30 million for a new journal, the Journal of Financial Excess.
How much revenue must earn to reach target operating income : How much revenue must it earn to reach its target operating income? When a company decides that it wants to earn more than the break-even point of income
Distinguish between inferential and descriptive statistics : Distinguish between the inferential and descriptive statistics discussed in the research.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the estimated operating income for march

Identify which of the overhead items are fixed costs. Explain how you were able to identify the cost - Calculate the breakeven point

  Discuss a division or subunit of organization

How does the evaluation scheme affect performance? If it is optimal, explain why. Otherwise, explain why you think it is suboptimal, and recommend

  Determine the time variance

Standard and actual cost for direct labor for the manufacture of 1500 units, Determine the Time variance, rate variance and total direct labor cost variance.

  What is definition of maximization of shareholders wealth

What is the definition of maximization of shareholders' wealth? How to calculate the maximization of shareholders' wealth? Please provide the example.

  Explain how city racquetball club cash management differ

Explain how City Racquetball Club's cash management would differ from the present if the new membership plan and fee structure were adopted.

  Find what is the breakeven point in total units

What is the breakeven point in total units? XYZ sells two types of trucks, large trucks and small trucks. A large truck sells for $95,000 per unit

  Case study of pastel company

The Pastel Company must reach a make/buy decision with respect to a high-volume, easily made metal tool, RG1. Sean Gray, the cost analyst

  Determine the number of equivalent units of production

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0"

  Estimate the fixed costs per year

Use account analysis to estimate the fixed costs per year, and the variable cost per unit. Paragon Company would like to estimate production costs

  Discuss how your organization might use the findings

The purpose of the study defines what the researcher wants to find out and is found in the introductory section of the research article. Sometimes the purpose contains a research questions.

  General analysis of investment performance of billabong ltd.

BUACC1508 ACCOUNTING AND FINANCE - Explain briefly what is revealed by the ratios and other calculations in the context of the company's profitability

  What is the expected forward exchange rate one year from now

What is the expected forward exchange rate 1 year from now? What would be the net present value and rate of return generated by this project?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd