11. Highjinks, Incorporated, has provided the following budgeted data: Sales 20,000 units Selling price $ 100 per unit Variable expense $ 70 per unit $50,000 Fixed expense How many units would the company have to sell in order to have a net operating income equal to 5% of total sales dollars? a) 18,000 units b) 20,000 units c) 15,333 units d) 14,286 units

11. Highjinks, Incorporated, has provided the following budgeted data: Sales 20,000 units Selling price $ 100 per unit Variable expense $ 70 per unit $50,000 Fixed expense How many units would the company have to sell in order to have a net operating income equal to 5% of total sales dollars? a) 18,000 units b) 20,000 units c) 15,333 units d) 14,286 units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...

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Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production: Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range: a. 8,000-unit level of sales and production b. 12,000-unit level of sales and production (Hint: You must first determine the unit selling price and certain unit costs.)
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