The average selling price is $0.60 per unit, the average variable cost is $0.36 per unit, and the total fixed costs are $1,500. If operating profits of $900 are desired, a sales volume of 2,500 units is necessary.
Answer the following statement true (T) or false (F)
False
This statement is False. ($1,500 + 900)/($0.60 ? 0.36) = 10,000 units.
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Merchandise is sold on account for $3,500, and the sale is subject to sales tax of $175 . The sales account should be credited for
a. $0; b. $175; c. $3,500; d. $3,675; e. cannot be determined from information given
A person who needs to purchase something usually completes a requisition.
Answer the following statement true (T) or false (F)
DRP is used by companies to ______.
a. systematically plan and control their logistics and product distribution activities b. manage inventory levels of finished products at distribution centers c. ensure continuous improvement of the production process d. integrate data across all functional areas
A piece of equipment costs $30,000, and is expected to generate $8,500 of annual cash revenues and $1,500 of annual cash expenses. The disposal value at the end of the estimated 10-year life is $3,000. Ignoring income taxes, the payback period is:
A. 6.98 years. B. 3.53 years. C. 4.29 years. D. 3.86 years. E. Some other period of time not noted.