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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.

FINANCIAL ACCOUNTING
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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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.
Transcribed Image Text: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.
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