Tabitha
Tabitha manufactures a product that sells very well. Her facility has a capacity of 241,000 units per year. The fixed costs are $122,000 annually, and the variable costs are $11 per unit. The product currently sells for $17.
a. What total annual revenue is required for a net income of $397,000?
b. What would be the annual net income if sales were at 55% of the capacity and the variable costs decreased by 25%?
a. What total annual revenue is required for a net income of $397,000?
b. What would be the annual net income if sales were at 55% of the capacity and the variable costs decreased by 25%?
Correct answer:
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