2C1G METALCRAFT PRODUCES THREE INEXPENSIVE SOCKET WRENCH SETS THAT AR...

203.

CSO: 2C1a

LOS: 2C1g

MetalCraft produces three inexpensive socket wrench sets that are popular with do-it-

yourselfers. Budgeted information for the upcoming year is as follows.

Estimated

Model

Selling Price

Variable Cost

Sales Volume

No. 109

$10.00

$ 5.50

30,000 sets

No. 145

15.00

8.00

75,000 sets

No. 153

20.00

14.00

45,000 sets

Total fixed costs for the socket wrench product line is $961,000. If the company’s actual

experience remains consistent with the estimated sales volume percentage distribution,

and the firm desires to generate total operating income of $161,200, how many Model

No. 153 socket sets will MetalCraft have to sell?

a.

26,000.

b.

54,300.

c.

155,000.

d.

181,000.