Which of the following equations calculates the number of units to sell to earn a...
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Accounting
Which of the following equations calculates the number of units to sell to earn a targeted income? a. Number of Units to Earn Target Income = Variable Costs Contribution Margin Ratio b. Number of Units to Earn Target Income = (Fixed Costs + Target Income) Sales c. Number of Units to Earn Target Income = (Total Fixed Cost + Target Income) Contribution Margin per Unit d. Number of Units to Earn Target Income = Fixed Costs Contribution Margin Ratio
The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. For example, Product A uses 35 orders, and Product B uses 65 orders. Calculate the consumption ratios for each product.
a. 0.35; 0.65
b. 0.60; 0.40
c. 0.20; 0.80
d. 0.25; 0.75
Pauley Company provides home health care. Pauley charges $35 per hour for professional care. The variable costs are $21 per hour, and the fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of the home health care. What is the break-even point in hours? (Round answer to the nearest whole hour.) a. 1,393 hours b. 2,229 hours c. 5,571 hours d. 3,714 hours
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