Question - Reid Recreation Products sells the Amazing Foam Frisbee for $21. The variable cost per unit is $11; fixed costs are $37,200 per month.
What is the annual breakeven point in units? In sales dollars?
How many frisbees must Reid sell to earn $21,200 in operating income?
What operating income must Reid earn to realize net income of $16,980, assuming that the company is in the 25% tax bracket?
How many frisbees must Reid sell to earn $16,980 in net income, assuming that the company is in the 25% tax bracket?