Information for questions 19 and 20: Briar Tek has fixed costs of $700

QUESTION

Information for questions 19 and 20: Briar Tek has fixed costs of $700,000. Selling price per unit is $180 and Variable cost per unit is $110.19: How many units must Briar Tek Sell to earn a profit of $560,000?A. 10,000B. 14,000C. 18,000D. 20,00020: A new employee suggests that Briar Tek sponsor a l
19: How many units must Briar Tek Sell to earn a profit of $560,000? Option “c ” is the correct answer .Required sales = Variable cost Fixed cost Target Net income180*x = 110*x 700000 56000070x = 1260000X(required units ) = 1260000 /70= 18000 units20. new employee suggests that Briar Tek sponsor a little league baseball team as a form of advertising. The cost to sponsor the team is $3,500. How many more units must be sold to cover this cost?option “C” is the correct

er 180*x = 110*x 700000 3500= 10050 unitsBreak even units = 10000So the additional units required = 5021. When activity based costing is implemented, the initial outcome is normally that:ption “C” s the correct answer. OThe cost of low volume products will be higher and the cost of high volume products will be lower

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