Buttermilk Bakery has provided the following cost data for the last year when 5,000 Danish pastries were produced and sold. Required:
a.How many units would the company need to sell to earn $3,000 in operating income?
b.How many units would the company need to sell to earn $1,000 in net income if the tax rate is 20%?

Question

Buttermilk Bakery has provided the following cost data for the last year when 5,000 Danish pastries were produced and sold.  Required: 
a.How many units would the company need to sell to earn $3,000 in operating income?
b.How many units would the company need to sell to earn $1,000 in net income if the tax rate is 20%?

Quizplus · Accepted Answer

The Answer of Buttermilk Bakery has provided the following cost data for the last year when 5,000 Danish pastries were produced and sold.  Required: 
a.How many units would the company need to sell to earn $3,000 in operating income?
b.How many units would the company need to sell to earn $1,000 in net income if the tax rate is 20%?

Buttermilk Bakery Has Provided the Following Cost Data for the Last