Reid Recreation Products sells the Amazing Foam Frisbee for $13. The variable cost per unit is $3; fixed costs are $37,200 per month.
What is the annual breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars.)
How many frisbees must Reid sell to earn $20,400 in operating income?
What operating income must Reid earn to realize net income of $18,480, assuming that the company is in the 40% tax bracket?
How many frisbees must Reid sell to earn $18,480 in net income, assuming that the company is in the 40% tax bracket?