The Allen Company Had the Following Income Statement for the Month

question 67

Multiple Choice

The Allen Company had the following income statement for the month of July: $\begin{array}{c}\text { Allen Company}\\\text { Income Statement}\\\text { For the Month of July}\\\\\begin{array}{lrr}\text { Sales }(\$ 60 \times 10,000) & & \$ 600,000 \\\text { Cost of goods sold: } & & \\\text { Direct materials }(\$ 12 \times 10,000) & \$ 120,000 \\\text { Direct labour }(\$ 9 \times 10,000) & 90,000 & \\\text { Variable factory overhead }(\$ 7.50 \times 10,000) & 75,000 \\\text { Fixed factory overhead } & \underline{120,000} & \underline{405,000} \\\text { Gross profit } & & \$ 195,000 \\\text { Selling and administrative expenses: } \\\text { Variable }(\$ 1.50 \times 10,000) & \$ 15,000 & \\\text { Fixed }& \underline{90,000} & \underline{105,000} \\\text { Operating income }& & \$ 90,000\end{array}\end{array}$
-What is the sales volume required to earn a profit of $9,000?

• A)3,300 units
• B)4,300 units
• C)7,300 units
• D)10,000 units

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Definitions:

Purchase

The act of buying goods or services, involving a transaction between a buyer and a seller.

Web-Based Technologies

Internet-enabled tools and systems that allow users to perform tasks, exchange information, and access services online.

Social Technologies

Digital tools and platforms that enable interaction and collaboration among users.

Sales Process

A series of steps that a sales team takes to move a customer from potential prospect to buyer, often including stages such as outreach, discovery, negotiation, and closing.