For the Coming Year, River Company Estimates Fixed Costs at $109,000

question 99

Essay

For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine
(a) the break-even point in units of sales,
(b) the unit sales required to realize operating income of $150,000 and
(c) the probable operating income if sales total $500,000.?Round units to the nearest whole number and percentage to one decimal place.

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Definitions:

Postindustrial Society

A phase of societal development characterized by the shift from manufacturing-based economies to service-oriented and knowledge-based activities.

Global Economic Restructuring

The ongoing transformation of the world economy, emphasizing shifts in industry, technology, and labor markets.

Assembly-Line Work

A manufacturing process in which parts are added to a product in a sequential manner using a combination of human labor and machinery to efficiently create a finished product.

Economic Restructuring

The process of transforming the economic organization of a society, often involving shifts in types of employment, modifications in trade patterns, and changes in the level of technological innovation.