Mountain Ridge Ski Gear sells ski goggles for $45 per pair. In FY 2024, total fixed costs are expected to be $360,000 and variable costs are estimated at $15 per unit. Mountain Ridge Ski Gear wants to have an FY 2024 operating income of $180,000. Use this information to determine the number of units of ski goggles that Mountain Ridge Ski Gear must sell in FY 2024 to meet this goal.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...
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Mountain Ridge Ski Gear sells ski goggles for $45 per pair. In FY 2024, total
fixed costs are expected to be $360,000 and variable costs are estimated at $15
per unit. Mountain Ridge Ski Gear wants to have an FY 2024 operating
income of $180,000.
Use this information to determine the number of units of ski goggles that
Mountain Ridge Ski Gear must sell in FY 2024 to meet this goal.
Transcribed Image Text:Mountain Ridge Ski Gear sells ski goggles for $45 per pair. In FY 2024, total fixed costs are expected to be $360,000 and variable costs are estimated at $15 per unit. Mountain Ridge Ski Gear wants to have an FY 2024 operating income of $180,000. Use this information to determine the number of units of ski goggles that Mountain Ridge Ski Gear must sell in FY 2024 to meet this goal.
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