Kitchen help inc khi is a manufacturer of toaster ovens to

Assignment Help Accounting Basics

Reference no: EM13574966

Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control over operations, the president of KHI wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for KHI's expected costs at production levels of 86,000, 101,000, and 116,000 units.

Variable costs
Manufacturing		$6 per unit
Administrative		$4 per unit
Selling		$2 per unit
Fixed costs
Manufacturing		$150,000
Administrative		$78,000 If KHI sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $301,500 before taxes?

Reference no: EM13574966

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