Williams & Williams Co. produces plastic spray bottles and wants to earn a before-tax profit of...

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Williams & Williams Co. produces plastic spray bottles and wants to earn a before-tax profit of $1,000,000 next quarter. Vari

Franklin Cards sells greeting cards for $10.00 each and plans to sell 138,000 cards every quarter. The management accountant

business accounting

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Answer 1

Answer #1

1) Required unit = (Fixed cost+desired profit)/Contribution margin per unit = (1975000+1000000)/(5-2.50) = 1190000 Units

2) Margin of safety (units) = 138000-96600 = 41400 Units

In Sales dollars = 41400*10 = $414000

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Answer 2

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