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PR 3-8 (Algo) (LO 3.5) Pawxie Vibe company has sales unit data and the following... Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ 6.20 $ 1.55 $ 4.65 $ 3.10 $ 1.55 Question a. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals. b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target? Note: Round your answer to the nearest whole unit number. c. Paw: Vibe predicts that can cut fixed advertising expenses by $10,700, resulting in a reduction in unit sales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note: Round your answer to 2 decimals. Answer

PR 3-8 (Algo) (LO 3.5) Pawxie Vibe company has sales unit data and the following... Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ 6.20 $ 1.55 $ 4.65 $ 3.10 $ 1.55 Question a. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals. b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target? Note: Round your answer to the nearest whole unit number. c. Paw: Vibe predicts that can cut fixed advertising expenses by $10,700, resulting in a reduction in unit sales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note: Round your answer to 2 decimals. Answer

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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PR 3-8 (Algo) (LO 3.5) Pawxie Vibe company has sales unit data and the following... Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ 6.20 $ 1.55 $ 4.65 $ 3.10 $ 1.55 Question a. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals. b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target? Note: Round your answer to the nearest whole unit number. c. Pawxie Vibe predicts that it can cut fixed advertising expenses by $10,700, resulting in a reduction in unit sales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note: Round your answer to 2 decimals. Answer
Transcribed Image Text:PR 3-8 (Algo) (LO 3.5) Pawxie Vibe company has sales unit data and the following... Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information: Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $ 6.20 $ 1.55 $ 4.65 $ 3.10 $ 1.55 Question a. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals. b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target? Note: Round your answer to the nearest whole unit number. c. Pawxie Vibe predicts that it can cut fixed advertising expenses by $10,700, resulting in a reduction in unit sales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note: Round your answer to 2 decimals. Answer
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