Asked by Melita Bahor on Sep 22, 2024
Kuldip's factory manufactures toys that sell for $29.95 each. The variable cost per toy is $11, and the total fixed costs for the month are $45,000. What would unit sales have to be to attain a net income over $12,000?
A) 3,050 units
B) 2,900 units
C) 2,950 units
D) 2,996 units
E) 3,008 units
Variable Cost
Costs that vary directly with the level of production or output, such as materials and labor costs.
Net Income
The total profit of a company after subtracting all expenses from revenues.
Fixed Costs
Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
- Compute net earnings across various capacities and revenue levels.
- Evaluate the revenue imperative to meet a certain net profit objective.
Learning Objectives
- Compute net earnings across various capacities and revenue levels.
- Evaluate the revenue imperative to meet a certain net profit objective.
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