Answered: How many calendars must Paney sell next…

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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Paney Company makes and sells calendars. The information on the cost per unit is as follows:

Direct materials	$1.50
Direct labor	1.20
Variable overhead	0.90
Variable marketing expense	0.40

The fixed marketing expense totaled $13,000, and the fixed administrative expense totaled $35,000. The price per calendar is $10. How many calendars must Paney sell next year to earn an operating income of $24,600?

Paney Company makes and sells calendars. The information on the cost per unit is as follows:

Direct materials	$1.50
Direct labor	1.20
Variable overhead	0.90
Variable marketing expense	0.40

The fixed marketing expense totaled $13,000, and the fixed administrative expense totaled $35,000. The price per calendar is $10. What is the variable product expense per unit?

a.$1.30

b.$3.60

c.$5.00

d.$4.60

e.$4.00

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