Three years ago, Daniel Carter started a business that creates and delivers customized gift boxes to corporate clients. Daniel sells the gift boxes for $35 each, and his variable costs are $20 per box. He incurs $15,000 in fixed costs each year. How many gift boxes will Daniel have to sell this year if he wants to earn $40,500 in operating income?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 37P
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Three years ago, Daniel Carter started a business that creates and delivers
customized gift boxes to corporate clients. Daniel sells the gift boxes for
$35 each, and his variable costs are $20 per box. He incurs $15,000 in
fixed costs each year.
How many gift boxes will Daniel have to sell this year if he wants to earn
$40,500 in operating income?
Transcribed Image Text:Three years ago, Daniel Carter started a business that creates and delivers customized gift boxes to corporate clients. Daniel sells the gift boxes for $35 each, and his variable costs are $20 per box. He incurs $15,000 in fixed costs each year. How many gift boxes will Daniel have to sell this year if he wants to earn $40,500 in operating income?
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