Bonita Industries produces small lightweight camping trailers with rear kitchen facilities. The company's fixed costs are $830000 peryear and its variable costs are 60% of the unit selling price of $16000. How many campers must the company sell to earn a net incomeof $194000?O 107O 160O 138O 130

The question is based on the concept of Cost Accounting. Target Sales is the sales Required to…

Answered: Bonita Industries produces small…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11E

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Bonita Industries produces small lightweight camping trailers with rear kitchen facilities. The company's fixed costs are $830000 per year and its variable costs are 60% of the unit selling price of $16000. How many campers must the company sell to earn a net income of $194000? O 107 O 160 O138