Data for the Bidwell Company are as follows:
| Sales (100,000 units) | $1,000,000 | ||
| Costs | Fixed | Variable | |
| Raw material | $ 0 | $300,000 | |
| Direct labor | 0 | 200,000 | |
| Factory costs | 100,000 | 150,000 | |
| Selling and administrative costs | 110,000 | 50,000 | |
| Total costs | $210,000 | $700,000 | 910,000 |
| Operating income | $ 90,000 |
Required:
a. Based on the preceding data, calculate break-even sales in units.
b. If Bidwell Company is subject to an effective income tax rate of 40 percent, calculate the number of units Bidwell would have to sell to earn an after-tax profit of $90,000.
c. If fixed costs increase $31,500 with no other cost or revenue factors changing, calculate the break-even sales in units.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.