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Kid's Corner sells lamp systems for $25. These systems use LEDs to create a light display across ...
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Kid's Corner sells lamp systems for $25. These systems use LEDs to create a light display across ...
Kid's Corner sells lamp systems for $25. These systems use LEDs to create a light display across walls or ceilings. Kid's Corner pays $13 for the systems. Fixed costs incurred by the company are $18,000.
a.
What is the break-even point in units?
b.
If Kid's Corner wishes to earn $10,000 in operating income, how many systems will it
have to sell?
Textbook
Managerial Accounting
Edition:
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th
Author:
Davis
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More solutions for this book are
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a.
$18,000 ÷ ($25 ̶ $13) = 1,500
b.
($18,000 + $10,000) ÷ ($25 ̶ $13) = 2,334
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