À week before the end of Its fiscal year, a company forecasts that it will not meet its target net operating income of $1,000,000 for the year (based on absorption costing). Forecast data is as follows: Sales Revenue Variable COGS Fixed manufacturing overhead Variable S&A: Commission on Sales Fixed S&A $10,000,000 $4,000,000 $5,000,000 3% $100,000 $200/unit $80/unit In the past, the company has had a policy of having zero inventories at the end of each period. For the current year, no further sales are possible and all of the units produced so far have been sold. The CEO has decided to produce additional units for Inventory in the last week of the year in order to meet the income target. How many additional units (nearest whole number) need to be produced for inventory in the last week of the year in order to meet the net operating income target if the sales commission is left unchanged at 3%? O 50,000 O 3,191 O 54,348

À week before the end of Its fiscal year, a company forecasts that it will not meet its target net operating income of $1,000,000 for the year (based on absorption costing). Forecast data is as follows: Sales Revenue Variable COGS Fixed manufacturing overhead Variable S&A: Commission on Sales Fixed S&A $10,000,000 $4,000,000 $5,000,000 3% $100,000 $200/unit $80/unit In the past, the company has had a policy of having zero inventories at the end of each period. For the current year, no further sales are possible and all of the units produced so far have been sold. The CEO has decided to produce additional units for Inventory in the last week of the year in order to meet the income target. How many additional units (nearest whole number) need to be produced for inventory in the last week of the year in order to meet the net operating income target if the sales commission is left unchanged at 3%? O 50,000 O 3,191 O 54,348

Name: A week before the end of Its fiscal year, a company forecasts that It
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Description: A week before the end of Its fiscal year, a company forecasts that It will not meet its target net operating income of $1,000,000 for theyear (based on absorption costing). Forecast data is as follows:Sales RevenueVariable COGSFixed manufacturing ov

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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