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Unformatted text preview: Number of Units to earn Target Income = $85,000/ $10 Number of Units to earn Target Income = 8500 NEW ITEM - Wednesday - Let's work through Case 7-20, Chapter 7 page 305, dealing with Ethics and the Manager: Absorption Costing Income Statements. Work through questions presented in the problem. Please begin with question one and then move through the subsequent questions included in the problem. 1) Break Even Units = Total Fixed Cost/Price-Variable Cost per unit Break Even Units = $11,448,000/$120 - $87.20 Break Even Units = $11,448,000/$32.80 Break Even Units = 349,024 Sales Revenue = 349,024 * $120 = $41,882,880 Number of Units to earn target income = Fixed cost + Target Income/ Price Variable Costs Number of Units to Earn Target Income = $11,448,000 + 2,000000/$120 87.20 Number of Units to Earn Target Income = $13,448,000/$32.80 Number of Units to Earn Target Income = 410,000...
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This note was uploaded on 11/30/2010 for the course ACC 505 taught by Professor Tims during the Spring '10 term at Walden University.
- Spring '10
- Managerial Accounting