Solved

A Chair Manufacturer Has Established the Following Flexible Budget for the Month

Question 6

Essay

A chair manufacturer has established the following flexible budget for the month. \quad \quad \quad \quad \quad \quad \quad \quad  Units Produced and Sold \text { Units Produced and Sold }
1,0001,5002,000 Sales $10,000$15,000$20,000 Variable Costs (5,000)(7,500)10,000) Fixed Costs (2,000)(2,000)(2,000) Profit $3,000$5,500$8,000\begin{array} { | l | r | r | r | } \hline & 1,000 & 1,500 & 2,000 \\\hline \text { Sales } & \$ 10,000 & \$ 15,000 & \$ 20,000 \\\hline \text { Variable Costs } & ( 5,000 ) & ( 7,500 ) & \langle 10,000 ) \\\hline \text { Fixed Costs } & ( 2,000 ) & ( 2,000 ) & ( 2,000 ) \\\hline \text { Profit } & \$ 3,000 & \$ 5,500 & \$ 8,000 \\\hline\end{array} Required:
a. What is the sales price per chair?
b. What is the expected profit if 1,600 chairs are made?

Correct Answer:

verifed

Verified

a. The sales price per chair can be calc...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents