Question
Assume that ABC Co. sells T-shirts for $20/ shirt. The marginal cost of production is $9/ shirt, and fixed costs are $1,500/ year. The tax
Assume that ABC Co. sells T-shirts for $20/ shirt. The marginal cost of production is $9/ shirt, and fixed costs are $1,500/ year. The tax rate is 20%. What is the new break-even point of the number of T-shirts required to be sold if sales price and fixed costs are both reduced by 15%.
Select one: a. None of the above
b. 187
c. 159
Question 2 Question text XYZ Co. intends to expand operations and enters into a 10 year lease at $500/ month. Currently, the marginal cost of production is $9/ shirt and fixed costs are $1,500/ year. The tax rate is 20%. XYZ Co. expects to sell its T-shirts for $18 and reduce its marginal costs by $2/ shirt. It also expects to earn net income of $5/ shirt. What is the required dollar sales to meet its expectations?
Select one: a. $22,500
b. $28,421
c. None of the above
Question 3 ABC Co. reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000 and direct materials used totaling $96,000. Beginning Work in Process is $350,000 and Ending Work in Process for the period is $100,000. How much is direct labour cost?
Select one: a. $276,000 b. $354,000 c. $624,000 d. None of the above
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