Alder Inc. produced and sold 2,000 units of one product during the year. The company's net income was $40,000, its fixed cost per unit was $60, and the variable cost ratio was .25. What must the company's sales revenue be if it wants to earn $50,000 next year? O $192,000 $208,000 O $226,667 $211,111 None of the above

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13E
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Alder Inc. produced and sold 2,000 units of one product during the year. The company's net income
was $40,000, its fixed cost per unit was $60, and the variable cost ratio was .25. What must the
company's sales revenue be if it wants to earn $50,000 next year?
$192,000
O $208,000
$226,667
$211,111
None of the above
Transcribed Image Text:Alder Inc. produced and sold 2,000 units of one product during the year. The company's net income was $40,000, its fixed cost per unit was $60, and the variable cost ratio was .25. What must the company's sales revenue be if it wants to earn $50,000 next year? $192,000 O $208,000 $226,667 $211,111 None of the above
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