Question

please help me with the process and answers

SUBMIT AT THE START OF CLASS ON TUESDAY, FEBRUARY 25TH 1) RYAN HAS THE FOLLOWING DATA: VE VC/UNIT VC PERCENTAGE FIXED COSTS S54.40 80% S114,240 YAS HOW MANY UNITS MUST RYAN SELL TO BREAK EVEN? UNITS 20400 F: Forest A 700 to R u zu no per un solo me porno 2) 56 REFER TO QUESTION I. HOW MANY UNITS MUST RYAN SELL TO ACHIEVE AFTER TAX NET INCOME (ATNI) - $79,968? (ASSUME 30% TAX RATE) UNITS et Pes 794 =(1-03) liveto).+ (556 3) JANE HAS A WIACM - $8.25, ATNI IS CURRENTLY $109,725. WHAT WILL ATNI BE IF JANE IS ABLE TO SELL 1,400 UNITS ABOVE CURRENT LEVELSY (ASSUME 30% TAX RATE) ATNI 4) TOM HAS THE FOLLOWING DATA FOR PRODUCTS A, B AND C: PRODUCT A PRODUCT B PRODUCTC CM/UNIT - $9, MIX PERCENTAGE -25% CM/UNIT - SS, MIX PERCENTAGE -60% CM/UNIT-S3, MIX PERCENTAGE -15% FIXED COSTS - $79,800. WHAT IS THE TOTAL SCM OF PRODUCT A WHEN TOM'S ATNI -$35,055.(ASSUME TAX RATE -25%) PRODUCT A SCM

Answer 1

Requirement (1)

	%	Per unit
Sales	100%	68	(100 * 54.4)/80
VC	80%	54.4
Contribution	20%	13.6
Total Fixed cost (given)	114240
Break even units	8400
(Fixed cost / contribution per unit)	(114240/13.6)

Requirement (2)
After tax income = Pre tax income (1 - Tax rate)
79968 = Pre tax income (1 - 30%)
79968 = Pre tax income (70%)
Pre tax income = 79968/70%
Pre tax income (i.e profit) = 114240
Contribution = Profit + Fixed cost
Contribution = 114240 + 114240
Contribution = 228480
Contribution per unit = 13.6 (as computed above)
Therefore, total units sold = (228480/13.6) = 16800 units

Requirement (3)
After tax income = Pre tax income (1 - Tax rate)
109725 = Pre tax income (1 - 30%)
109725 = Pre tax income (70%)
Pre tax income = 109725/70%
Pre tax income (i.e profit) = 156750
Contribution = Profit + Fixed cost
Contribution = 156750 + 114240 (assumed to be from case 1)
Contribution = 270990
Contribution per unit = 8.25 (given)
Therefore, total units being sold currently = (270990/8.25) = 32847.27 units rounded off to 32848 units

Target sales units = 32849 + 1400 = 34249
Target total contribution = 34249 * 8.25 = 282554.25
Contribution = Profit + Fixed cost
282554.25 = Profit + 114240
Profit (pre tax) = 282554.25 - 114240 = 168314.25
Profit (post tax) = Pre tax income (1 - Tax rate)
Profit (post tax) = 168314.25 (1 - 30%)
Profit (post tax) = 168314.25 (70%)
Profit (post tax) = 117819.975

Requirement (4)
After tax income = Pre tax income (1 - Tax rate)
35055 = Pre tax income (1 - 25%)
35055 = Pre tax income (75%)
Pre tax income = 35055/75%
Pre tax income (profit) = 46740

Contribution = Profit + Fixed cost
Contribution = 46740 + 79800
Contribution = 126540

Mix % of A = 25%
Therefore, CM of A = 126540 * 25%
CM of A = 31635