1. units required to earn a desired profit = fixed cost + desired amount of profit
contribution per unit
contribution per unit is not given, therefore,
contribution = selling price - variable cost per unit
= 40-25 = 15
units required = 360,000+150,000 / 15
= 510,000/15
= 34,000 units.
2. as per the question,
units= 47,400 fixed cost = 532600, (because the units produced is between 40,200 and 81,300.)
desired profit = 131,000 variable cost = as it is not given, assume as V
price = 22
we know that,
units required to earn desired profit = fixed cost + desired profit / contribution per unit
contribution = selling price - variable cost
= 22 - V.
substituting in above formula gives,
47,400 = 532,600 + 131,000 /22-V
47,400 = 663,600 / 22-V
47,400 (22- V) = 663,600
22-V = 663,600 / 47400
22-V = 14
V = 22-14
Variable cost = 8.
Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25,...
Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn an after-tax (post-tax) profit of $150,000 for the year. The expected income tax rate is 20%. Determine the sales volume in units required to earn the desired after-tax profit. Multiple Choice None of the choices presented are within 100 units of the correct answer. 28,922 Units 34,000 Units 36,500 Units 30,180 Units
Finch Corporation produces products that it sells for $21 each. Variable costs per unit are $4, and annual fixed costs are $341,700. Finch desires to earn a profit of $79,900. Required Use the equation method to determine the break-even point in units and dollars. Determine the sales volume in units and dollars required to earn the desired profit.
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6, and annual fixed costs are $241,200. Franklin desires to earn a profit of $58,800. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Baird Corporation produces products that it sells for $21 each. Variable costs per unit are $6, and annual fixed costs are $303,000. Baird desires to earn a profit of $49,500. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit." a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Vernon Corporation produces products that it sells for $19 each. Variable costs per unit are $9, and annual fixed costs are $206,000. Vernon desires to earn a profit of $41,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. Answer is complete but not entirely correct. a. Break-even point in units Break-even point in dollars Sales volume in units...
Q.1
Rooney Corporation produces products that it sells for $18 each.
Variable costs per unit are $9, and annual fixed costs are
$189,900. Rooney desires to earn a profit of $33,300.
Required
Use the equation method to determine the break-even point in
units and dollars.
Determine the sales volume in units and dollars required to earn
the desired profit.
a. Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
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The marketing manager of Jordan Corporation has determined that a market exists for a telephone with a sales price of $23 per unit. The production manager estimates the annual fixed costs of producing between 40,900 and 80,600 telephones would be $310,400. Required Assume that Jordan desires to earn a $118,000 profit from the phone sales. How much can Jordan afford to spend on variable cost per unit if production and sales equal 47,600 phones? Variable cost per unit
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