Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price Variable costs Fixed costs $12.00 per case 5.50 per case 390,000 per year Exercise 3-33 (Static) Basic Decision Analysis Using CVP (LO 3-1) Required: a. How many cases must Charlevoix sell annually to break even? Note: Do not round intermediate calculations. b. How many cases must Charlevoix sell annually to make an operating profit of $46,280? Note: Do not round Intermediate calculations. a. Break-even sales in units b. Number of units to be sold

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
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Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics:
$12.00 per case
Sales price
Variable costs
Fixed costs
5.50 per case
390,000 per year
Exercise 3-33 (Static) Basic Decision Analysis Using CVP (LO 3-1)
Required:
a. How many cases must Charlevoix sell annually to break even?
Note: Do not round Intermediate calculations.
b. How many cases must Charlevoix sell annually to make an operating profit of $46,280?
Note: Do not round Intermediate calculations.
a. Break-even sales in units
b. Number of units to be sold
Transcribed Image Text:Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: $12.00 per case Sales price Variable costs Fixed costs 5.50 per case 390,000 per year Exercise 3-33 (Static) Basic Decision Analysis Using CVP (LO 3-1) Required: a. How many cases must Charlevoix sell annually to break even? Note: Do not round Intermediate calculations. b. How many cases must Charlevoix sell annually to make an operating profit of $46,280? Note: Do not round Intermediate calculations. a. Break-even sales in units b. Number of units to be sold
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