Question
A firm expects to sell 25,000 units of its product at $11 per unit.Net income before tax is predicted to be $60,000.If the variable costs
A firm expects to sell 25,000 units of its product at $11 per unit.Net income before tax is predicted
to be $60,000.If the variable costs per unit are $6 per unit, total fixed costs must be:
Mar Co. has fixed costs of $36,000 and a contribution rate of 24%. If predicted sales are $200,000,
what is the margin of safety as a percent of sales?
Marnan Company has fixed costs of $56,000.Its product sells for $25 per unit and variable costs amount to $15 per unit.Next year Marnan Company wishes to earn a before-tax net income that
equals 10% of fixed costs. How many units must be sold to achieve this income level?
Step by Step Solution
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Step: 1
1 Given Predicted sales quantity 25000 units Selling price per unit 11 Net income before tax 60000 and Variable costs per unit 6 First lets calculate ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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