Essay
Sole Company manufactures running shoes.The selling price is $80 per pair (unit)and variable costs are $60 per pair (unit).The sales volume of $776,000 generates $100,750 of net income before taxes.
Required:
A) Compute total fixed costs.
B) Compute total variable costs.
C) Compute the break-even point in units.
D) Compute the quantity of units above the break-even point to reach targeted net income before taxes.
Correct Answer:
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A)$776,000/$80= 9,700 units
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