4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a pair. Each pair of roller skatesincurs $55 in variable costs.Calculate the following:How many pairs of skates needs to be sold to break-even?a.How many pairs of skates needs to be sold have $140,000 in operating income?If fixed costs increase by $7,500 how many more pairs need to be sold?b.с.

Break even point means a point where there is no profit or loss incurred. in other words Break even…

4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a pair. Each pair of roller skates incurs $55 in variable costs. Calculate the following: а. How many pairs of skates needs to be sold to break-even? b. How many pairs of skates needs to be sold have $140,000 in operating income? с. If fixed costs increase by $7,500 how many more pairs need to be sold?

4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a pair. Each pair of roller skates incurs $55 in variable costs. Calculate the following: а. How many pairs of skates needs to be sold to break-even? b. How many pairs of skates needs to be sold have $140,000 in operating income? с. If fixed costs increase by $7,500 how many more pairs need to be sold?

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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