Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bonita Company manufactures a single product. Bonita normally produces and sells 480 units per month at $108 each. The companys income tax rate is 30%.

Bonita Company manufactures a single product. Bonita normally produces and sells 480 units per month at $108 each. The companys income tax rate is 30%. Estimated monthly costs are as follows:
Manufacturing Nonmanufactuing
Variable $11,040 $4,320
Fixed 12,480 6,720
What is the contribution margin per unit?
Contribution margin per unit $

LINK TO TEXT

What is the contribution margin ratio? (Round to 2 decimal places, e.g. 17.54%.)
Contribution margin ratio

%

LINK TO TEXT

How many units must Bonita sell to break even? (Round answer to nearest whole units, e.g. 125.)
Breakeven point

units

LINK TO TEXT

If the company desires an after-tax profit of 19% on the selling price, what is the equivalent pretax return on sales? (Round intermediate calculations to 4 decimal places, e.g. 15.1679 and final answer to 0 decimal places, e.g. 5,125.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles Practice And Problems

Authors: Jagdish Prakash

1st Edition

9327244745, 978-9327244748

More Books

Students also viewed these Accounting questions

Question

a neglect of quality in relationship to international competitors;

Answered: 1 week ago