Question 1
The Marietta Company has fixed costs of $75,000 and variable costs are 75% of the selling price. To realize operating income of $10,000 from sales of 80,000 units, the selling price per unit ________. (Round the answer to the nearest cent.)
◦ must be $1.06
◦ must be $1.42
◦ must be $4.25
◦ must be $3.75
Question 2
The planned operating income is calculated by ________.
◦ dividing net income by tax rate
◦ dividing net income by 1
− tax rate
◦ multiplying net income by tax rate
◦ multiplying net income by 1
− tax rate