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.