Question
A manufacturer sells only one product. The Fixed Costs per year are As Follows: Manufacturing $100,000 and Selling and Administrative Expenses are $80,000. The Variable
A manufacturer sells only one product.
The Fixed Costs per year are As Follows:
Manufacturing $100,000 and Selling and Administrative Expenses are $80,000.
The Variable costs per unit are as follows:
Manufacturing $8 and selling $2
The selling price is $30 per unit
The company does not carry any inventory.
Provide all calculation
Your answer
1A- The company's contribution margin per unit is $.
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1B-In order to break even, the company must sell units.
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1C-The dollars of sales needed in order to break even is $ .
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Your answer
1D-If the company sells 12,000 units, its net income before tax will be $ .
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Your answer
1E-If the company wants to earn $50,000 of net income before income taxes, it must sell units of product.
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