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Question 4 Alpha Manufacturing Inc. is interested to know whether their monthly capacity of 500 units is enough to breakeven given the expenses as follows: variable costs of $15 per unit and fixed costs (such as rent, utilities) of $120,895 per year. The selling price per unit is $70. The owner aims to reach a yearly profit target of $500,000. However, the production supervisor contends that the target is not realistic. Prove that the production supervisor has a point. Answer: The number of units to be produced to achieve the target is units. 4 However, this amount is than the per year of

Question 4 Alpha Manufacturing Inc. is interested to know whether their monthly capacity of 500 units is enough to breakeven given the expenses as follows: variable costs of $15 per unit and fixed costs (such as rent, utilities) of $120,895 per year. The selling price per unit is $70. The owner aims to reach a yearly profit target of $500,000. However, the production supervisor contends that the target is not realistic. Prove that the production supervisor has a point. Answer: The number of units to be produced to achieve the target is units. 4 However, this amount is than the per year of

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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Question 4 Alpha Manufacturing Inc. is interested to know whether their monthly capacity of 500 units is enough to breakeven given the expenses as follows: variable costs of $15 per unit and fixed costs (such as rent, utilities) of $120,895 per year. The selling price per unit is $70. The owner aims to reach a yearly profit target of $500,000. However, the production supervisor contends that the target is not realistic. Prove that the production supervisor has a point. Answer: The number of units to be produced to achieve the target is units. 4 However, this amount is than the per year of
Transcribed Image Text:Question 4 Alpha Manufacturing Inc. is interested to know whether their monthly capacity of 500 units is enough to breakeven given the expenses as follows: variable costs of $15 per unit and fixed costs (such as rent, utilities) of $120,895 per year. The selling price per unit is $70. The owner aims to reach a yearly profit target of $500,000. However, the production supervisor contends that the target is not realistic. Prove that the production supervisor has a point. Answer: The number of units to be produced to achieve the target is units. 4 However, this amount is than the per year of
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