ameengage.com/mo Tube NESTOGA elnur Maps Student Portal Home | IT | Conesto... Homepage - eCone......

70.2K

Verified Solution

Question

Accounting

ameengage.com/mo Tube NESTOGA elnur Maps Student Portal Home | IT | Conesto... Homepage - eCone... AME ENGAGE Acacia Fitness Company recently expanded its manufacturing capacity to allow it to produce up to 17,500 pairs of trail run shoes of either the huko style or the speed style. The sales department assures management that it can sell between 12,250 and 15,750 pairs (units) of either product this year. Because the styles are very similar, Acacia Fitness will produce only one of the two styles. The following data were compiled by the accounting department. Huko Speed Selling price per unit $94 $92 Variable cost per unit $52.64 $57.04 Fixed costs will total $373,000 if the huko style is produced but will be only $322,000 if the speed style is produced. Do not enter dollar signs or commas in the input boxes. Round the Unit Contribution Margin to 2 decimal places and all other number to the next highest whole number. a) If Acacia Fitness Company desires a net income of $40,000 before tax, how many pairs of speed style shoes must the company sell if that is the only style they sell? Unit Contribution Margin (UCM), Speed:: $41.36 Unit sales required:: $9990 x pairs b) If Acacia Fitness Company desires a net income of $40,000 before tax, how many pairs of huko style shoes must the company sell if that is the only style they sell? Unit Contribution Margin (UCM), Huko:: $ Unit sales required:: $ pairs x Q Search DELL O English (en) A QUIZ r 0 C Y ENG US

image

AME ENGAGE" Eng Acacia Fitness Company recently expanded its manufacturing capacity to allow it to produce up to 17,500 pairs of trail run shoes of either the huko style or the speed style. The sales department assures management that it can sell between 12,250 and 15,750 pairs (units) of either product this year. Because the styles are very similar, Acacia Fitness will produce only one of the two styles. The following data were compiled by the accounting department. Fixed costs will total $373,000 if the huko style is produced but will be only $322,000 if the speed style is produced. Do not enter dollar signs or commas in the input boxes Round the Unit Contribution Margin to 2 decimal places and all other number to the next highest whole number. a) If Acacis Fitness Company desires a net income of $40,000 before tax, how many pairs of speed style shoes must the company sell if that is the only style they sell? Unit Contribution Margin (UCM), Speed:: \$ Unit sales required:: $ x pairs b) If Acacia Fitness Company desires a net income of $40,000 before tax, how many pairs of huko style shoes must the company sell if that is the only style they sell? Unit Contribution Margin (UCM), Huko:: 9 Unit sales required:: pairs

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students