f fixed costs are $1,500,000, the unit selling price is $250, and the unit varia

Question

f fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000? a. 14,166 units b. 12,500 units c. 16,000 units d. 11,538 units The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Setups Inspections Assembly (DLH) Hooks - 4,000 units 1 4 1 Nooks - 8,000 units 2 1 3 Activity Pool Activity Base Budgeted Amount Setups 20,000 $ 60,000 Inspections 24,000 120,000 Assembly (DLH) 28,000 420,000 ____ Calculate the total factory overhead to be charged to Nooks. a. $300,000 b. $400,000 c. $448,000 d. $560,000

Explanation / Answer

Let, the required sales unit be 'x'

So, $250x - $130x - $1,500,000 = $200,000

=> 120x = $1,700,000

=> x = 14,166

Thus, the required sales units is 14,166 units (Option-a)

Note :- Please post the second question again with proper heading and figures as it is currently in a paragraph form which is making it tough to read and understand proper categories

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