Questions 18 to 20 are based on the following Joel Company sells only one product. Managers estimate that the company will sell 35,000 units of the product each month. The relevant information about the product line of Joel Company appears below: Selling price Variable expenses Total fixed expenses $150.00 per unit $ 90.00 per unit $240,000 per month 18. The breakeven sales in units would be (A) 1,600 (B) 1,000 (C) 2,670 (D) 4,000 19. If Joel Company’s fixed expenses could be decreased by $20,000, the new breakeven dollar sales would be (A) $88,000 (B) $366,670 (C) $550,000 (D) $132,000 20. Joel Company’s goal for the month is to earn a target operating income of $300,000. How many units must be sold to achieve this goal? (A) 5,0000 units (B) 6,000 units (C) 3,600 units (D) 9,000 units
Questions 18 to 20 are based on the following Joel Company sells only one product. Managers estimate that the company will sell 35,000 units of the product each month. The relevant information about the product line of Joel Company appears below: Selling price Variable expenses Total fixed expenses $150.00 per unit $ 90.00 per unit $240,000 per month 18. The breakeven sales in units would be (A) 1,600 (B) 1,000 (C) 2,670 (D) 4,000 19. If Joel Company’s fixed expenses could be decreased by $20,000, the new breakeven dollar sales would be (A) $88,000 (B) $366,670 (C) $550,000 (D) $132,000 20. Joel Company’s goal for the month is to earn a target operating income of $300,000. How many units must be sold to achieve this goal? (A) 5,0000 units (B) 6,000 units (C) 3,600 units (D) 9,000 units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
Related questions
Question
Questions 18 to 20 are based on the following
|
Joel Company sells only one product. Managers estimate that the company will sell 35,000 units of the product each month. The relevant information about the product line of Joel Company appears below:
Selling price Variable expenses Total fixed expenses |
$150.00 per unit $ 90.00 per unit $240,000 per month |
18. The breakeven sales in units would be
(A) 1,600
(B) 1,000
(C) 2,670
(D) 4,000
19. If Joel Company’s fixed expenses could be decreased by $20,000, the new breakeven dollar sales would be
(A) $88,000
(B) $366,670
(C) $550,000
(D) $132,000
20. Joel Company’s goal for the month is to earn a target operating income of $300,000. How many units must be sold to achieve this goal?
(A) 5,0000 units
(B) 6,000 units
(C) 3,600 units
(D) 9,000 units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT