Hayduke Corporation Reported the Following Results from the Sale of 6,000

question 32

Multiple Choice

Hayduke Corporation reported the following results from the sale of 6,000 units in May: sales $300,000, variable costs $180,000, fixed costs $90,000, and net income $30,000.Assume that Hayduke increases the selling price by 10% on June 1.How many units will have to be sold in June to maintain the same level of net income?

• A)4,800.
• B)5,160.
• C)5,400.
• D)6,000.

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Definitions:

Allowance Method

A method in accounting for managing bad debts by predicting the accounts that cannot be collected at the end of every period.

Direct Write-off Method

An accounting method for recognizing bad debts where the specific uncollectible accounts receivable are written off as they are identified.

Uncollectible Accounts Receivables

Accounts receivable that a company does not expect to collect and must write off as a loss because the debtor is unable to pay the owed amount.

Merchandise

Goods that are bought and sold in business; the commodities or items that a business trades in.