In: Accounting
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.