Planet of the Grapes, Inc. makes a single product that it sells for $40 each. Variable costs are $15 per unit and annual fixed costs total $120,000 per year. The company would like to realize operating income next year of $90,000. What level of sales in dollars must the company achieve to reach its target profit? A.$4,800 B.$192,000 C.$336,000 D.$8,400

In order to calculate desired sales for a required level of profit: Desired sales = (Fixed cost +…

Answered: Planet of the Grapes, Inc. makes a…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

See similar textbooks

Related questions

Question

Planet of the Grapes, Inc. makes a single product that it sells for $40 each. Variable costs are $15 per unit and annual fixed costs total $120,000 per year. The company would like to realize operating income next year of $90,000. What level of sales in dollars must the company achieve to reach its target profit?

A.

$4,800

B.

$192,000

C.

$336,000

D.

$8,400

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions