Paney Company Makes Calendars

question 134

Multiple Choice

Paney Company makes calendars.Information on cost per unit is as follows:

Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000.The price per calendar is $10.How many units must be sold to yield targeted income of $36,000?

• A) 6,000
• B) 5,833
• C) 8,167
• D) 14,000
• E) 12,000

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Definitions:

Intra-entity Gross Profit

The profit recognized from transactions within the same company, affecting consolidated financial statements.

Eliminate Unrecognized

The process of removing gains, losses, or other items that have not been realized or acknowledged formally from the financial statements.

Intra-entity Gross Profit

The profit recorded from transactions that occur within the same entity, often eliminated in consolidation.

Eliminate Intra-entity Transfer

The process of removing sales and purchases of goods or services made between companies within the same corporate group in consolidated financial statements.