Hayduke Corporation Reported the Following Results from the Sale of 5000

question 87

Multiple Choice

Hayduke Corporation reported the following results from the sale of 5000 units in May: sales $300000 variable costs $180000 fixed costs $90000 and net income $30000. Assume that Hayduke increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income?

• A) 4444.
• B) 4600.
• C) 4750.
• D) 5000.

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Definitions:

Opportunity Costs

The cost of an alternative that is foregone to pursue a certain action, representing the benefits that could have been received from the chosen alternative.

Accelerated Depreciation

Any method that shifts depreciation forward in an asset’s life. Accelerated methods increase early charges and reduce those that come later, keeping total depreciation constant.

Tax Accounting

A method of accounting that focuses on taxes rather than the appearance of public financial statements.

Deferred Tax Liability

Deferred Tax Liability is a tax that is assessed or is due for the current period but has not yet been paid, often resulting from timing differences between book and tax deductions.