Company assembles bicycles and sells them at $3,500 each. Company’s costs are as follows: Direct materials $ 1,100 per unit Direct labor 300 per unit Variable MOH 120 per unit Variable selling 200 per unit Fixed MOH $ 300,000 total Fixed period costs $ 200,680 total CALCULATE the number of bicycles that the company must sell to earn $400,000 operating income. (must show calculations or no credit) Number of bicycles:_________________________
Company assembles bicycles and sells them at $3,500 each. Company’s costs are as follows:
Direct materials $ 1,100 per unit
Direct labor 300 per unit
Variable MOH 120 per unit
Variable selling 200 per unit
Fixed MOH $ 300,000 total
Fixed period costs $ 200,680 total
CALCULATE the number of bicycles that the company must sell to earn $400,000 operating income. (must show calculations or no credit)
Number of bicycles:_________________________
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