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   The breakeven sales in units would be (A) 1,600 (B) 1,000 (C) 2,670 (D) 4,000   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   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
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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

 

The breakeven sales in units would be (A) 1,600 (B) 1,000 (C) 2,670 (D) 4,000

 

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

 

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

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