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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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
Transcribed Image Text: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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