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Bovous Stores,Inc The Revenues That the Company Must Earn Annually to Make

Question 76

Multiple Choice

Bovous Stores,Inc.,sells several products.Information of average revenue and costs is as follows:  Selling price per unit $20.00 Variable costs per unit:  Direct material $4.00 Direct manufacturing labor $1.60 Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $96,000\begin{array}{lr}\text { Selling price per unit } & \$ 20.00 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 4.00 \\\text { Direct manufacturing labor } & \$ 1.60 \\\text { Manufacturing overhead } & \$ 0.40 \\\text { Selling costs } & \$ 2.00 \\\text { Annual fixed costs } & \$ 96,000\end{array}
The revenues that the company must earn annually to make a profit of $144,000 are ________.


A) $378,000
B) $425,000
C) $400,000
D) $450,000

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