Question
a. Given that the selling price of one unit is $38, calculate how many units Ronald Enterprises would have to sell in order to break
a. Given that the selling price of one unit is $38, calculate how many units Ronald Enterprises would have to sell in order to break even.
b. Assume the selling price is $43 per unit. Calculate how many units Ronald Enterprises would have to sell in order to produce a profit of $24,600 before taxes.
c. Calculate what price Ronald Enterprises would have to charge in order to produce a profit of $27,000 after taxes if 7,500 units were produced and sold.
d. Calculate what price Ronald Enterprises would have to charge in order to produce a before-tax profit equal to 30% of sales if 9,500 units were produced and sold. (Round answer to 2 decimal places, e.g. 15.25.)
Question 6 Ronald Enterprises Ltd. has estimated the following costs for producing and selling 16,000 units of its product: Direct materials Direct labour Variable overhead $80,000 112,000 48,000 30,000 48,000 37,500 Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Ronald Enterprises' income tax rate is 40%
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