Question: 87 Accounting The following data are available for the Northern Division of Comet Products and the single product it makes: Unit selling price $60 Variable cost per unit $36 Annual fixed costs $840,000 Average operating assets $4,500,000 How many units must the Northern Division sell each year to have an ROI of 16%?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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Question: 87 Accounting
The following data are available for the Northern Division of Comet Products
and the single product it makes:
Unit selling price
$60
Variable cost per unit
$36
Annual fixed costs
$840,000
Average operating assets $4,500,000
How many units must the Northern Division sell each year to have an ROI of
16%?
Transcribed Image Text:Question: 87 Accounting The following data are available for the Northern Division of Comet Products and the single product it makes: Unit selling price $60 Variable cost per unit $36 Annual fixed costs $840,000 Average operating assets $4,500,000 How many units must the Northern Division sell each year to have an ROI of 16%?
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