Sales = Variable Expenses + Fixed Expenses + Target Operating

question 324

Essay

Sales = Variable expenses + Fixed expenses + Target operating income
$4.50Q = $3.00Q + $120,000 + $0
$1.50Q = $120,000
Q = $120,000/$1.50 = 80,000 units
2.80,000 units x $4.50 = $360,000
3.Sales = Variable expenses + Fixed expenses + Target operating income
$4.50Q = $3.00Q + $120,000 + $90,000
$1.50Q = $210,000
Q = $210,000/$1.50 = 140,000 units
4.Margin of safety = Sales - Sales at break-even
= $540,000 - $360,000
= $180,000
b)

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Definitions:

Alexander Hamilton

A founding father of the United States, first Secretary of the Treasury, and influential in laying the groundwork for the nation's financial system.

James Madison

An American statesman, diplomat, and the fourth President of the United States, known as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution.

Federalists

Members of a political group that supported the adoption of the U.S. Constitution and the creation of a strong federal government.

Decentralized Government

A system of governance where power is spread out among various regional, local, or state authorities, instead of being concentrated in a central government.