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The equation which reflects a CVP income statement is a. Sales - Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales - Variable costs + Fixed costs = Not incor

The equation which reflects a CVP income statement is a. Sales - Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales - Variable costs + Fixed costs = Not incor

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 12PC
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The equation which reflects a CVP income statement is a. Sales Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales Variable costs + Fixed costs = Net income. e. Sales Cost of goods sold + Operating expenses + Net income. Clear my choice Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80 000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160 000, how many units must be sold to earn income of $80 000? a. 30 000 units b. 1 200 000 units c. 80 000 units d. 120 000 units None Clear my choice A company desires to sell a sufficient quantity of products to earn a profit of $300 000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600 000, how many units must be sold to earn net income of $300 000? 90 000 units a. b. None c. 67 500 units d. 112 500 units e. 168 750 units Clear my choice
Transcribed Image Text:The equation which reflects a CVP income statement is a. Sales Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales Variable costs + Fixed costs = Net income. e. Sales Cost of goods sold + Operating expenses + Net income. Clear my choice Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80 000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160 000, how many units must be sold to earn income of $80 000? a. 30 000 units b. 1 200 000 units c. 80 000 units d. 120 000 units None Clear my choice A company desires to sell a sufficient quantity of products to earn a profit of $300 000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600 000, how many units must be sold to earn net income of $300 000? 90 000 units a. b. None c. 67 500 units d. 112 500 units e. 168 750 units Clear my choice
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