NK Pty Ltd manufactures tennis shoes. The following data is from the past six months:   Month Volume Revenue Cost March 101,396 $253,490 $244,070 April 120,040 $300,100 $297,907 May 151,916 $379,790 $350,162 June 151,467 $378,668 $351,128 July 115,702 $289,255 $286,874 August 129,935 $324,838 $310,459   Assume you are a junior management accountant working for NK Ltd. Your manager tells you that the owners of the business are unhappy with the 6 month profit total. They have demanded that after tax profit is at least $23,800 every month. The tax rate is 30%. Approximately how many pairs of tennis shoes does the firm need to sell each month in order to hit the owners’ profit target?     Group of answer choices 137,345 168,427 179,582 162,844

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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NK Pty Ltd manufactures tennis shoes. The following data is from the past six months:

 

Month

Volume

Revenue

Cost

March

101,396

$253,490

$244,070

April

120,040

$300,100

$297,907

May

151,916

$379,790

$350,162

June

151,467

$378,668

$351,128

July

115,702

$289,255

$286,874

August

129,935

$324,838

$310,459

 

Assume you are a junior management accountant working for NK Ltd. Your manager tells you that the owners of the business are unhappy with the 6 month profit total. They have demanded that after tax profit is at least $23,800 every month. The tax rate is 30%.

Approximately how many pairs of tennis shoes does the firm need to sell each month in order to hit the owners’ profit target?

 

 

Group of answer choices

137,345

168,427

179,582

162,844

 

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