For the current year ending October 31, Yentling Company expects fixed costs of $426,000, a unit variable cost of $40, and a unit selling price of $60. a. Compute the anticipated break-even sales (units). 110,000 x units b. Compute the sales (units) required to realize income from operations of $98,000. 154,000 x units

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
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Break-Even Sales and Sales to Realize Income from Operations
For the current year ending October 31, Yentling Company expects fixed costs of $426,000, a unit variable cost of $40, and a unit selling price of $60.
a. Compute the anticipated break-even sales (units).
110,000
X units
b. Compute the sales (units) required to realize income from operations of $98,000.
154,000
X units
Feedback
Check My Work
a. Fixed costs divided by the unit contribution margin equals break-even point in units.
b. (Fixed costs + Target profit) divided by unit contribution margin
= sales units.
Transcribed Image Text:Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31, Yentling Company expects fixed costs of $426,000, a unit variable cost of $40, and a unit selling price of $60. a. Compute the anticipated break-even sales (units). 110,000 X units b. Compute the sales (units) required to realize income from operations of $98,000. 154,000 X units Feedback Check My Work a. Fixed costs divided by the unit contribution margin equals break-even point in units. b. (Fixed costs + Target profit) divided by unit contribution margin = sales units.
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