Gable Industries sells its product for $15 per unit. Next year, fixed are expected to be $500,000, and variable expenses are anticipated to be $9 per unit. expenses How many units must the company sell to generate a net operating income of $120,000?

Gable Industries sells its product for $15 per unit. Next year, fixed are expected to be $500,000, and variable expenses are anticipated to be $9 per unit. expenses How many units must the company sell to generate a net operating income of $120,000?

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 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...

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Question

100%

How many units must the company sell?

Gable Industries sells its product for
$15 per unit. Next year, fixed
are expected to be
$500,000, and variable expenses are
anticipated to be $9 per unit.
expenses
How many units must the company
sell to generate a net operating
income of $120,000?

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