David's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,350, variable...

David's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,350, variable costs are $350 per dress, and fixed costs are $100,000.

4. What is the Bridal Shoppe's operating income when 200 dresses are sold?

a. $120,000

b. $80,000

c. $100,000

d. $200,000

e. $30,000

5. How many dresses are sold when operating income is zero?

a. 225 dresses

b. 100 dresses

c. 150 dresses

d. 90 dresses

e. 60 dresses

6. How many dresses must the Bridal Shoppe sell to yield after-tax net income of $30,000, assuming the tax rate is 40%?

a. 180 dresses

b. 150 dresses

c. 170 dresses

d. 200 dresses

e. 270 dresses

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Expert Solution

ekkarill92 answered 1 year ago

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