If FP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $54,000 before taxes?Units to be sold Flounder Possible Inc. (FP) is a manufacturer of toaster ovens. To improve control over operations, the president of FP wants to beginusing a flexible budgeting system, rather than using only the current master budget. The following data are available for FP's expectedcosts at production levels of 81,000, 90,000, and 99,000 units.Variable costsManufacturing$5 per unitAdministrative$3 per unitSelling$3 per unitFixed costsManufacturing$144,000Administrative$72,000

Solution: Contribution margin per unit = sales price - variable costs = 16 - (5+3+3)= 16 - 11 = $5…

Answered: Variable costs Manufacturing $5 per…

Variable costs Manufacturing $5 per unit Administrative $3 per unit Selling $3 per unit Fixed costs Manufacturing $144,000 Administrative $72,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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