Provide correct answer for general accounting question Ocean City Kite Company sells kites for $9 per kite. In FY2019, total fixed costs are expected to be $240,000 andvariable costs are estimated at $3 a unit. Ocean City KiteCompany wants to have an FY 2019 operating income of$90,000.Use this information to determine the number of units ofkites that Ocean City Kite Company must sell in FY 2019 tomeet this goal.

Ocean City Kite Company, which sells kites for $9 per unit, aims to achieve an operating income of…

Answered: Ocean City Kite Company sells kites for…

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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Al Khalid LLC are the manufacturers of Lamps. The following are the details of their operation during 2020. Average monthly market demand is 2,000 lamps, ordering cost is RO 200 per order, inventory carrying cost is 20 percent per annum, cost of lamps is RO 1,000 per lamp, normal usage is 100 lamps per week, minimum usage is 50 lamps per week, maximum usage is 200 lamps per week and lead time to supply 4 -6 weeks. You are required to calculate the maximum level of stock. a. 1120 units b. 1102 units c. 1063 units d. 1302 units
Remar, Inc. reported the following results from sales of 5,000 units of Product C for the month of June 2019 (refer to the attached picture): Assume that Remar, Inc. increases the selling price of Product C by 10% on July 1, 2019. How many units of Product C would have to be sold in July 2019 in order to generate an operating income of P20,000? sales 200,000 variable cost 120,000 fixed cost 60,000 operating income 20,000
In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows: Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021: A. Variable Operating Expense B. Fixed Operating Expense C. Total Operating Expense
Excel company intends to introduce a new product in the year 2021. The selling price of the product is set at sh.500 for each unit and the sales are projected to be 1000 units. A return of 20% on the investment of sh.500, 000 in the product will be required in the coming year. Determine the target cost for each unit of product. Select one: A. Sh. 100 B. Sh. 400 C. Sh. 500 D. None of the above
In 2019, Deepika Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2019, the company expects annual property taxes to decrease by $15,000. Required: a. Calculate operating income and the breakeven point for 2019. b. Calculate the breakeven point for 2019.
Oriole Inc. earned operating income of $110,000 during 2021. The company wants to earn operating income of $154,000 during 2022. Its fixed costs are expected to be $61,600, and variable costs are expected to be 30% of sales. (a) Determine the required sales to meet the target operating income during 2022. Required sales $
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Skysong, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter Units First 91,200 Second 171,000 Third 627,000 Fourth 136,800 Annual total 1,026,000 Skysong incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Skysong will incur fixed manufacturing costs of $820,800 and fixed nonmanufacturing costs of $1,231,200. Skysong will sell its product for $4 per unit. (a) Determine the amount of net income Skysong will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to O decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 1st Quarter Income before taxes (Integral Approach)…
ABB Company reported the results from sales of 5,000 units of Product Y for April 2022. See image.Assume that ABB plans to increase the selling price of Product Y by 10% in June 2022. How many units of the product would have to be sold to maintain an operating income of P20,000? Assume that ABB plans to increase the selling price of Product Y by 10% in June 2022. How many units of the product would have to be sold to earn a net income of P48,000? ABB is subject to 25% corporate income tax.
Jessup Company expects to incur manufacturing overhead costs of $20,000 each month during the year ending December 31, 2022 and direct production costs (i.e. direct labor and direct materials) of $126 per unit. Total units produced for the year ending December 31, 2022 are estimated to be 10,000 units. If the company desires to price its product at cost plus 50%, the sales price per unit would be which of the following amounts? $225 $192 $189
Zed Inc., has the following details for the year ending 31st March, 2019 : Sales =24,000 units @ 200 per unit; P/V Ratio 25% and Break-even Point 50% of sales. Calculate: Fixed cost for the year Profit earned for the year Units to be sold to earn a target net profit of 11,00,000 for a year

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