Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Northenscold Company sells several products. Information of average revenue and costs are as
follows:
Selling price per unit
$20.00
Variable costs per unit:
Direct materials
$4.00
Direct manufacturing labor $2.00
ABC cost per unit
$0.50
Fixed MOH
$0.40
Variable MOH
$0.30
Selling costs
$2.00
Annual fixed costs
$96,000
Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to
nearest whole unit).
Transcribed Image Text:Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).
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