Solution-How many pairs of tennis shoes does the firm need

How many pairs of tennis shoes does the firm need to sell

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Question - NK Pty Ltd manufactures tennis shoes. The following data is from the past six months:

Month	Volume	Revenue	Cost
March	101,396	$253,490	$244,070
April	120,040	$300,100	$297,907
May	151,916	$379,790	$350,162
June	151,467	$378,668	$351,128
July	115,702	$289,255	$286,874
August	129,935	$324,838	$310,459

Assume you are a junior management accountant working for NK Ltd. Your manager tells you that the owners of the business are unhappy with the 6 month profit total. They have demanded that after tax profit is at least $23,800 every month. The tax rate is 30%.

Approximately how many pairs of tennis shoes does the firm need to sell each month in order to hit the owners' profit target?

Reference no: EM133176179

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How many pairs of tennis shoes does the firm need to sell

Reference no: EM133176179

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