Question
a) Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars. b) Calculate the
a) Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars.
b) Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit.
c)Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant.
e) Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b).
f) Determine the sales required to earn an operating income of $342,000 after tax. YUX Corporation's income tax rate is 40%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started