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Flannigan Company manufactures and sells a single product that sells for $450 per unit: variable costs are re $300

Flannigan Company manufactures and sells a single product that sells for $450 per unit: variable costs are re $300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the dollar sales to earn the target pre-tax net income. Select one: a. $5,640,000. b. $5,990,990. c. $3,378,378. d. $2,991,004. e. $2,612,613. (quick answer please)
Transcribed Image Text:Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the dollar sales to earn the target pre-tax net income. Select one: a. $5,640,000. b. $5,990,990. c. $3,378,378. d. $2,991,004. e. $2,612,613. (quick answer please)
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