Question
Apollo Company manufactures a single product that sells for $145 per unit and whose total variable costs are $87 per unit. The company targets an
Apollo Company manufactures a single product that sells for $145 per unit and whose total variable costs are $87 per unit. The company targets an annual after-tax income of $942,500. The company is subject to a 35% income tax rate. Assume that fixed costs remain at $916,400. (1) Compute the unit sales to earn the target after-tax net income. Unit sales units ? (2) Compute the dollar sales to earn the target after-tax net income. (Omit the "$" sign in your response.) Dollar sales $ ?
Apollo Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The companys annual fixed costs are $596,000. |
(3) | Prepare a contribution margin income statement for Apollo Company at the break-even point. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) |
APOLLO COMPANY Contribution Margin Income Statement (at Break-Even) | |
(Click to select)Contribution marginFixed costsIncome taxesVariable costsSales | $ |
(Click to select)SalesIncome taxesFixed costsVariable costsContribution margin | |
(Click to select)Income taxesContribution marginFixed costsVariable costsSales | |
(Click to select)Contribution marginSalesFixed costsVariable costsIncome taxes | |
Net income | $ |
| |
(4) | Assume if the companys fixed costs increase by $134,000, what amount of sales (in dollars) is needed to break even? (Omit the "$" sign in your response.) |
Break-even point | $ |
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