A firm produces and sells a product with a contribution margin of $32 per unit. The firm is presently selling 90,000 units and earning $320,000 in pre-tax income. If the firm desires to increase its pre-tax income to $ 400,000, how many more units must it sell?
What will be an ideal response?
Target increase in pretax income = $80,000
Additional units = $80,000/$32 = 2,500 units
You might also like to view...
Under the FIFO method of product costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period.
Answer the following statement true (T) or false (F)
________ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be
A) Likability B) Expertise C) Experience D) Trustworthiness E) Compassion
Prior to recording adjusting entries, the Office Supplies account had a $380 debit balance. A physical count of the supplies showed $103 of unused supplies available. The required adjusting entry is:
A. Debit Office Supplies Expense $277 and credit Office Supplies $277. B. Debit Office Supplies $103 and credit Supplies Expense $277. C. Debit Office Supplies $103 and credit Office Supplies Expense $103 D. Debit Office Supplies Expense $103 and credit Office Supplies $103. E. Debit Office Supplies $277 and credit Office Supplies Expense $277.
An express warranty to be valid must be based on ____________________ not just someone's opinion
Fill in the blank(s) with correct word