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1) Summersville Production Company had the following projected information for the current year: Selling price per unit $150 Variable cost per unit $90 Total fixed
1) Summersville Production Company had the following projected information for the current year:
Selling price per unit | $150 |
Variable cost per unit | $90 |
Total fixed costs | $300,000 |
What level of sales dollars is needed to obtain a target before-tax profit of $75,000?
a.$937,500
b.$750,000
c.$625,000
d.$375,000
2) Summersville Production Company had the following projected information for the current year:
Selling price per unit | $150 |
Variable cost per unit | $90 |
Total fixed costs | $300,000 |
What is the profit when one unit more than the break-even point is sold?
a.$600,060
b.$1,500,150
c.$60
d.$150
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