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Author Question: Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling ... (Read 89 times)

meagbuch

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on: Mar 6, 2021

Question 1

Firebird Ltd. sells packaged birdseed for $6.00 per package. Variable product costs are $3.00 per package. Fixed costs are $12,000 per period. How many packages must Firebird sell to earn a target operating income of $7,900?
◦ 4,000 packages
◦ 2,633 packages
◦ 6,633 packages
◦ 3,317 packages

Question 2

Frazer Corp sells several products. Information of average revenue and costs is as follows:

Selling price per unit$28.5
 Variable costs per unit:
Direct material$6.00
Direct manufacturing labor$1.45
Manufacturing overhead$0.85
Selling costs$2.60
Annual fixed costs$125,000
What is the operating income earned if the company sells 20,000 units?
◦ $279,000
◦ $296,000
◦ $325,000
◦ $227,000
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by meagbuch on Mar 6, 2021

jasonq

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Reply #1 on: Mar 6, 2021
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meagbuch

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

dyrone

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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