Author Question: Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling ... (Read 71 times)

meagbuch · **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

jasonq · **Reply #1 on:** Mar 6, 2021

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