Chapter 3, Problem 19E

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Please explain the correct approach for solving this general accounting question.

A university's bookstore has an average textbook price of $78.50. Variable costs are $42.75 per textbook and fixed costs total $156,000. How many textbooks must be sold to provide an operating income of $47,500? How many textbooks would have to be sold if fixed costs increased by 15%? (round up calculation to the nearest number)

I need the correct answer to this financial accounting problem using the standard accounting approach.

Fairview Industries recently purchased 128,000 units of raw material for $576,000. Four units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $24.00 for each completed product. Fairview manufactured 31,250 finished units during the period just ended and used 127,500 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?

What is the direct materials price variance?

I need help finding the accurate solution to this general accounting problem with valid methods.

Can you solve this financial accounting question with the appropriate financial analysis techniques?

I am looking for a step-by-step explanation of this financial accounting problem with correct standards.