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

question 140

Multiple Choice

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

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

---

Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events excluding any changes resulting from investments by and distributions to owners.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, essentially representing the owners' claim against the company's assets.

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners, including all revenues, gains, expenses, and losses.

Total Assets

The sum of all assets owned by a company, as reported on the balance sheet, that are expected to provide future economic benefits.