Assume that Matthew’s fixed costs, variable costs, and sales price were the same last year, when he made $51,660 in net income. How many hats did Matthew sell last year, assuming a 30% income tax rate?
Homework Answers
| Before tax income = Net income / ( 1 - Tax% ) = 51660 / ( 1 - 30% ) = | 73800 | |
| Hats sold = ( Fixed cost + Before tax income ) / Contribution margin per unit = ( 221400 + 73800 ) / 6 = | 49200 | hats |
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Assume that Matthew’s fixed costs, variable costs, and sales
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Crane sells T-shirts imprinted with high school names and logos.
Last year the shirts sold for $26 each, and variable costs were
$14.00 per shirt. At this cost structure, the breakeven point was
45,000 shirts. However, the company actually earned $21,600 in net
income.
This year, the company is increasing its price to $28 per shirt.
Variable costs per shirt will increase by Unresolved%, and fixed
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40%.
Your answer...
assume that variable cost increase to 45% of the current sales price and fix costs increase...
assume that variable cost increase to 45% of the current sales
price and fix costs increase by $12,000 per month. If Sunland were
to raise its sales price 10% to cover these new costs, but the
number of blankets sold were to drop by 6% what would be the new
annual operating income?
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Crane sells T-shirts imprinted with high school names and logos.
Last year the shirts sold for $26 each, and variable costs were
$14.00 per shirt. At this cost structure, the breakeven point was
45,000 shirts. However, the company actually earned $21,600 in net
income.
This year, the company is increasing its price to $28 per shirt.
Variable costs per shirt will increase by Unresolved%, and fixed
expenses will increase by $1,107,240. The tax rate will remain at
40%.
Your answer...
assume that variable cost increase to 45% of the current sales
price and fix costs increase by $12,000 per month. If Sunland were
to raise its sales price 10% to cover these new costs, but the
number of blankets sold were to drop by 6% what would be the new
annual operating income?
h 3: Homework Question 3 of 4 4.17/5.25 View Policies Show Attempt History Current Attempt in Progress Sunland Monograms sells stadium blankets that have been monogrammed with...
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How many T-shirts must the company sell this year in order to
earn $56,640 in net income?
Crane sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $26 each, and variable costs were $14.00 per shirt. At this cost structure, the breakeven point was 45,000 shirts. However, the company actually earned $21,600 in net income. This year, the company is increasing its price to $28 per shirt. Variable costs per shirt will increase by...
Problem 3-33 Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $30 and sells them for $36. Adam's current breakeven point is 25,500 hats per year. 回Your answer is correct. Calculate contribution margin per unit. Contribution margin per unit SHOW SOLUTION SHOW ANSWER LINK TO TEXI LINK TO TEXT [ Your answer is correct. What is Adam's current level of fixed costs? (Use the...
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