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AQ - 25:` The European Division of Worldwide Reference Corporation produces a pocket dictionary containing* popular phrases in Six European languages . Annual budget data
AQ - 25:` The European Division of Worldwide Reference Corporation produces a pocket dictionary containing* popular phrases in Six European languages . Annual budget data for the coming year follow . Projected Sales are 100, 000 books . 5 1, 000, 000 Costs ! Fixed Variable Direct material .. . . . . ^ ^ ^ ^ ^ 5 300, 000 Direct labour . . . . ^ ^ ^ 200, 000 Manufacturing overhead .. 100,000 150, 000 Selling and administrative .. 1 10, 000 50,000 Total cost S ... . . 1 1^ 5 210, 000 5 700, 000 510,000 BudgetEd operating inc O ME .. . . 1 1 . ^ ^ ^ ^ ^ ^ 90,000 Required :` a . Calculate the break - even point in units and sales dollars . Do . If the European Division is subject to an income -tax rate of 40 percent , compute the number of units the company would have to sell to Earn an after -tax profit of $50, 000 . C . If fixed costs increased 5 31 , 500 with no other cost or revenue factor changing , compute the firm's break - even sales in units
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