Question

In: Accounting

Your friend Maz runs a small shop on Etsy selling homemade knit scarves and beanies. Maz...

Your friend Maz runs a small shop on Etsy selling homemade knit scarves and beanies. Maz is trying to figure out what they needs to sell before Christmas to earn an operating income of $500. You volunteer to help them figure it out because of all you’ve learned in ACTG 211. Maz provides you with the following information about their business:

Scarf Beanie
Price per Unit $11 $14
Variable Cost per unit $6 $6
Sales history from last month 30 units 20 units
Fixed Cost $380

What is the weighted average cost per unit? Round answer to nearest penny (x.xx).

How many units does Maz need to sell to breakeven?  Round answer to a whole unit.

How many units does Maz need to sell to achieve their target operating income?  Round answer to a whole unit.

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