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Author Question: Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,200, ... (Read 295 times)

mspears3

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Question 1

In CVP analysis, focusing on target net income rather than operating income ________.
◦ will increase the breakeven point
◦ will decrease the breakeven point
◦ will not change the breakeven point
◦ will help managers construct a better capital policy

Question 2

Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,200, variable costs are $700, and fixed costs are $100,000. How many dresses must the Bridal Shoppe sell to yield after-tax net income of $20,000, assuming the tax rate is 40%?
◦ 267 dresses
◦ 240 dresses
◦ 200 dresses
◦ 400 dresses


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Marked as best answer by mspears3 on Mar 6, 2021

yasmin

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