Sky City Company sells kites for $17.00 per kite. In FY 2024, total fixed costs are expected to be $260,000, and variable costs are estimated at $12.25 a unit. Sky City Company wants to have an FY 2024 operating income of $75,000. Use this information to determine the number of units of kites that Sky City Company must sell in FY 2024 to meet this goal. (Don't round-up unit calculation)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per...
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Sky City Company sells kites for $17.00 per kite. In FY
2024, total fixed costs are expected to be $260,000,
and variable costs are estimated at $12.25 a unit. Sky
City Company wants to have an FY 2024 operating
income of $75,000.
Use this information to determine the number of
units of kites that Sky City Company must sell in FY
2024 to meet this goal. (Don't round-up unit
calculation)
Transcribed Image Text:Sky City Company sells kites for $17.00 per kite. In FY 2024, total fixed costs are expected to be $260,000, and variable costs are estimated at $12.25 a unit. Sky City Company wants to have an FY 2024 operating income of $75,000. Use this information to determine the number of units of kites that Sky City Company must sell in FY 2024 to meet this goal. (Don't round-up unit calculation)
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ISBN:
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