Genifax reported the following information for September:
Sales revenue ……………………………………………………. $180,000
Fixed manufacturing costs ………………………………………. 22,000
Fixed marketing and overhead costs ……………………………. 14,000
Total variable costs ………………………………………………. 120,000
Unit price ………………………………………………………… 9
a. Determine the unit sales required to break even.
b. What unit sales would generate a net income of $30,000?
c. What unit sales would generate a profit of 20% of the sales revenue?
d. What sales revenue is required to produce a profit of $20,000?
e. If unit variable costs are reduced by 10% with no change in the fixed costs, what will be the unit sales to break even?