Answer: 885
Calculations:
Number of units required = (Desired before tax profit + Fixed cost) ÷ Contribution margin per unit
= ($32,000 + $56,500) ÷ 100
= $88,500 ÷ 100
= 885 units
.
Target profit after tax | $ 25,600 |
Tax [$25,600 x 20/80] | $ 6,400 |
Target profit before tax | $ 32,000 |
Contribution margin per unit = $300-$200 =$100
A company has the following data for last year. Price per unit Variable cost per unit...
А company has the following data for last year: Price per unit Variable cost per unit Fixed cost $300 $200 52,500 The company would like to generate a target profit $24,000 after paying taxes. Their tax rate is estimated be 20% How many units of its product does the company have to sell in order toachieve their goal? (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g. you should...
A company has the following data for last year. Help Save Price per unit Variable cost per unit Fixed cost $300 $200 51,500 The company would like to generate a target profit $23,200 after paying taxes. Their tax rate is estimated be 20% How many units of its product does the company have to sell in order toachieve their goal? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma Eg,...
A manufacturer sold 6,900 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of operating leverage was 4. What was the margin of safety in $) for this company last year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000...
A manufacturer sold 6,340 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of operating leverage was 4. What was the margin of safety (in $) for this company last year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g.. you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000...
For 2019, selected results for a company are shown below: Price per unit Net operating income Degree of operating leverage $ 12 $ 10,260 2.5 With no change in price or cost structure, the company expects the following for 2020: Sales Net operating income $ 183,600 $ 10,773 Given the information above, the number of units sold during 2019 must have been: (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a...
A producer of a single product had the following results for the year just ended: Unit Sales Margin of Safety in Units Net operating income 6,210 units 263 units 6,575 How much was fixed cost for the year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or...
A producer of a single product had the following results for the year just ended: Unit Sales Margin of Safety in Units Net operating income 6,220 units 263 units 6,575 $ How much was fixed cost for the year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease...
Data concerning the single product a company sekk show that selling price and variable expenses per unit are $150 and $37, respectively. Fixed expenses are $1,056,000 per month. The company is currently selling 9,900 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $10 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $102,000 per...
For 2019, selected results for a company are shown below: $ 15 $ 10,260 Price per unit Net operating income Degree of operating leverage 2.5 With no change in price or cost structure, the company expects the following for 2020: Sales Net operating income $ 183,600 $ 10,773 Given the information above, the number of units sold during 2019 must have been: (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sig comma. E.g.,...
NE Savod Help Save & Exit A company has fixed costs of $220,000 and breakeven sales of $1,600,000. What is the projected profit at $2,400,000 sales? (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. Eg, you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g. -1000 for a decrease or loss of one thousand) Projected profit=$1 -9 Saved Help Save & E...