a.
Break even point in units |
fixed cost/(selling price-variable cost) |
$60000/$(28-22) |
= 10,000 units |
b) | |
Contribution required = 12000 + 60000 | $72,000.00 |
No of units to be sold = 72000/6 | 12000 units |
c) | |
Income after tax | $14,500.00 |
Income before tax required = 14500/(1-35%) | $22,307.69 |
Contribution required = 22307.69 + 60000 | $82,307.69 |
No of units to be sold = 82307.69/6 | 13,718 units |
Cost-Volume Profit Analysis Hailstorm Company sells a single product for $28 per unit. Variable costs are...
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