Lupe is planning to expand their business manufacturing dream catchers. They have been doing well at local craft shows and in their online store, and feels that with a bigger manufacturing facility, with the addition of an employee, they will be able to expand and grow their business. They know that they would like a target profit of $60,000 annually. They also know that their selling price is $129 and their variable cost to produce the dream catcher is $57.28. The facility they are considering would make it possible for them to make 150 dream catchers per month. How much can they have in fixed costs per month to meet their target profit goal? O $14,350 O $5,758

Lupe is planning to expand their business manufacturing dream catchers. They have been doing well at local craft shows and in their online store, and feels that with a bigger manufacturing facility, with the addition of an employee, they will be able to expand and grow their business. They know that they would like a target profit of $60,000 annually. They also know that their selling price is $129 and their variable cost to produce the dream catcher is $57.28. The facility they are considering would make it possible for them to make 150 dream catchers per month. How much can they have in fixed costs per month to meet their target profit goal? O $14,350 O $5,758

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PB: Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and...

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