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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Exercise 3-8
Reid Recreation Products sells the Amazing Foam Frisbee for $13. The variable cost per unit is $3; fixed costs are $37,200 per month.
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What is the annual breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars.)
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How many frisbees must Reid sell to earn $20,400 in operating income?
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What operating income must Reid earn to realize net income of $18,480, assuming that the company is in the 40% tax bracket?
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How many frisbees must Reid sell to earn $18,480 in net income, assuming that the company is in the 40% tax bracket?
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