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Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 152,000 units (produced and sold): Total
Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 152,000 units (produced and sold): Total Annual Costs (152,000 units) Direct material Direct labor Manufacturing overhead Selling. general, and administrative S 293,000 269,000 217,000 137,000 S 916,000 Total Required: a. Compute Breed's unit selling price that will yield a profit of $376,000, given sales of 152,000 units. (Round your answer to 2 decimal places.) Selling price S 850 unit b. Compute Breed's dollar sales that will yield a projected 29 percent pront on sales, assuming variable costs per unit are 54 percent of the selling price per unit and fixed costs are $353,600. 1.414.400 400 c. Management believes that a selling price of $7.30 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)? (Round your final answer to nearest whole unit.) Number of units 193.7
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