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Adams Company makes and sells products with variable costs of $24 each. Adams incurs annual fixed costs of $321,280. The current sales price is $88.
Note: The requirements of this question are interdependent. For example, the $256,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.
rev: 02_12_2020_QC_CS-199849, 07_24_2020_QC_CS-220166
e. If fixed costs drop to $282,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. If fixed costs drop to $282,000, prepare an income statement using the contribution margin format. (Do not round intermediate calculations. Round your final answers to nearest whole number.) I can't seem to get the right answer for the Variable cost
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