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4-7) Move Along Company, a producer of cardboard boxes, has the following information: Income tax rate 35 percent Selling price per unit $3.75 Direct Materials
4-7) Move Along Company, a producer of cardboard boxes, has the following information: Income tax rate 35 percent Selling price per unit $3.75 Direct Materials per unit $0.75 Direct Labour per unit $0.25 Variable Mfg Over Head per unit $0.75 Total xed costs $37,500 4) Calculate Move Along's break even in units (round units up to next whole number) 5) Calculate Move Along's break even in dollars (to two decimals) 6) If Move Along desired $7,000 in Operating Income (before tax), how many units would they need to sell? (round units up to next whole number) 7) If Move Along desired $7,000 in Net Income (after tax), how many dollars of sales would they need? (to two decimals)
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