Kelvin Co. produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for the year are expected to total $90,000. The selling price is expected to be $4 per pair. The sales units required for Kelvin Co. to make an after-tax profit (πA) of $20,000, given an income tax rate of 50%, are: Multiple Choice 55,000 units.

Kelvin Co. produces and sells socks. Variable costs are budgeted at $2 per pair, and fixed costs for the year are expected to total $90,000. The selling price is expected to be $4 per pair. The sales units required for Kelvin Co. to make an after-tax profit (πA) of $20,000, given an income tax rate of 50%, are: Multiple Choice 55,000 units.

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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Frazier Company sells women's ski jackets. Each jacket sells for $250 and total variable costs per jacket are $100. Frazier Company's fixed costs per unit are $10 at an annual sales level of 10,000 units. What is Frazier's contribution margin percentage and what will be the increase in Frazier's operating income if it increases it sales by $1,000,000? a. 60%; and $500,000 b. 60%; and $600,000 c. 40%; and $400,000 d. 56%; and $440,000
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