Sales Extraordinaire sells one photo frame. The sales price per unit is $9. The variable cost per unit is $6. Fixed costs per annum are $11,000 and having a sales volume of 6,000 photo frames would result in: a. a profit of $3,000 b. a loss of $1,000 c. breaking even d. a profit of $7,000

Sales Extraordinaire sells one photo frame. The sales price per unit is $9. The variable cost per unit is $6. Fixed costs per annum are $11,000 and having a sales volume of 6,000 photo frames would result in: a. a profit of $3,000 b. a loss of $1,000 c. breaking even d. a profit of $7,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

Sales extraordinary sells one photo frame

Sales Extraordinaire sells one photo frame. The sales
price per unit is $9. The variable cost per unit is $6. Fixed
costs per annum are $11,000 and having a sales volume
of 6,000 photo frames would result in:
a. a profit of $3,000
b. a loss of $1,000
c. breaking even
d. a profit of $7,000

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