Widget Co. produces widgets for customers. The company has provided the following financial information for the past year. Eachscenario below is separate.Product Selling price per unit Sales Quantity Variable cost per unit Fixed costsWidgets$9.00528,000$2.00 $67,000Do not enter dollar signs or commas in the input boxes.Round breakeven units up to the nearest whole number.Round breakeven sales to the nearest whole number.a) Calculate break-even units and break-even sales.Breakeven units =Breakeven sales = $b) Suppose the company would like to generate an operating profit of $5,000. Determine the revenue that is needed to obtain this target,and calculate the number of units that need to be produced to meet this goal.Breakeven units =Breakeven sales = $c) Suppose the company decides to lower the selling price from $9.00 per unit to $8.00 per unit. Calculate break-even units and break-even sales.Breakeven units =Breakeven sales = $d) Suppose that fixed costs drop to $52,000 from $67,000. Calculate break-even units and break-even sales.Breakeven units =Breakeven sales = $

Breakeven Sales is that level of sales at which there is no profit no loss. In other words…

Answered: Widget Co. produces widgets for…

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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