Use the Information Provided Below to Answer the Following Questions

question 2

Essay

Use the information provided below to answer the following questions: Required:
a.How many units would the company need to sell to earn $4,000 in operating income?
b.How many units would the company need to sell to earn $4,000 in net income if the tax rate is 20%?
c.By how much would operating income change from part (b) with a 10% increase in units sold?

---

Definitions:

Pay Rates

Pay Rates are the amounts of money that individuals are compensated for their labor or services, usually expressed per hour, piece, or project.

Methods Time Measurement (MTM)

A predetermined motion time system that analyzes the motions involved in performing a task and sets standard times for tasks, facilitating efficient work processes and time management.

Complex Motions

Intricate or complicated movements, often referring to those required in manufacturing or robotic processes.

Sampling

The process of selecting a subset of individuals or items from a larger population to estimate characteristics of the whole population.