On January 1, Year 1, Raven Limo Service, Inc. paid $64,000 cash to purchase a limousine. The limo was expected to have a six year useful life and a $10,000 salvage value. On January 1, Year 5 the limo was sold for $30,000 cash.
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Assume the following information:Selling price per unit $200Contribution margin ratio 50%Total fixed costs $275,000How many units must be sold to generate a profit of $50,000? a. 3,250 unitsb. 2,500 unitsc. 2,750 unitsd. 4,000 units
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