Ocean City Kite Company sells kites for $9 per kite. In FY 2019, total fixed costs are expected to be $240,000 and variable costs are estimated at $3 a unit. Ocean City Kite Company wants to have an FY 2019 operating income of $90,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 to meet this goal.

Ocean City Kite Company sells kites for $9 per kite. In FY 2019, total fixed costs are expected to be $240,000 and variable costs are estimated at $3 a unit. Ocean City Kite Company wants to have an FY 2019 operating income of $90,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 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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