Breakeven analysis; target income (LO 1, 2) Reid Recreation Products sells the Amazing Foam Frisbee for $12. The variable cost per unit is $3; fixed costs are $36,000 per month. Required a.What is the annual breakeven point in units? In sales dollars? b.How many frisbees must Reid sell to earn $18,000 in operating income? c.What operating income must Reid earn to realize net income of $16,200, assuming that the company is in the 40% tax bracket? d.How many frisbees must Reid sell to earn $16,200 in net income?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Breakeven analysis; target income (LO 1, 2) Reid Recreation Products sells the Amazing Foam Frisbee for $12. The variable cost per unit is $3; fixed costs are $36,000 per month.

Required

a.What is the annual breakeven point in units? In sales dollars?

b.How many frisbees must Reid sell to earn $18,000 in operating income?

c.What operating income must Reid earn to realize net income of $16,200, assuming that the company is in the 40% tax bracket?

d.How many frisbees must Reid sell to earn $16,200 in net income?

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