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:

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.

Contractor

A person or company that undertakes a contract to provide materials or labor to perform a service or do a job.

Billings

The total amount of business conducted or billed to clients over a particular period, often used in professional firms.