Reference no: EM132625805

Company TEZA produces product X. The company expects the following revenues and costs in 2004 for its product X:

Revenues (400 units sold @ $600 per set. $240,000

Variable costs 160,000

Fixed costs 50,000

Question 1: How many units of product X must be sold for TEZA to reach their breakeven point?

Option 1: 400

Option 2: 250

Option 3: 200

Option 4: 150

Option 5: None of the above.

Question 2: How many units of product X must be sold to earn a target operating income of $90,000?

Option 1: 700

Option 2: 500

Option 3: 400

Option 4: 300

Option 5: None of the above.

Question 3: What amount of sales must TEZA have to earn a target net income of $63,000 if they have a tax rate of 30%?

Option 1: $489,000

Option 2: $429,000

Option 3: $420,000

Option 4: $300,000

Option 5: None of the above.