Answer the Following Questions Using the Information Below

question 150

Multiple Choice

Answer the following questions using the information below:
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs.
-The number of hams that must be sold to achieve $75,000 of operating income is:

• A)6,600 hams
• B)7,500 hams
• C)8,400 hams
• D)None of these answers are correct.

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Definitions:

Factory Equipment

This term describes the machinery and tools used in a manufacturing process to produce goods.

Overhead Cost

The ongoing expense of operating a business that is not directly attributed to a specific product or service, such as rent and utilities.

Work in Process Subsidiary Ledger

A detailed account that tracks the costs of unfinished goods in the manufacturing process at any given time.

Job Cost Sheet

A document that records and tracks the costs associated with a specific job or project, including materials, labor, and overhead.