Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company'smonthly fixed expense is $50,000.Required:1. Calculate the unit sales needed to attain a target profit of $10,000.2. Calculate the dollar sales needed to attain a target profit of $15,000.(For all requirements, do not round intermediate calculations.)1. Units sales to attain target profit1,500 units2. Dollar sales to attain target profit

Solution:- 1)Calculation of unit sales to attain target profit as follows:- Formula =(Fixed cost +…

Answered: Lin Corporation has a single product…

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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Answer the following questions using the information below: Company A sells a single product. 1,500 units were sold resulting in $30,000 of sales revenue; $21,000 of variable costs, and $2,400 of fixed costs. If sales increase by $20,000, operating Income will increase BY: ⒸA$11,400 OB. None of them OC. $6,000 OD. $12,000

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