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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). Direct
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). Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Total Annual Costs (152,000 units) $ 291,000 262,000 205,000 136,000 $ 894,000 Required: a. Compute Breed's unit selling price that will yield a profit of $489,200, given sales of 152,000 units. b. Compute Breed's dollar sales that will yield a projected 28 percent profit on sales, assuming variable costs per unit are 57 percent of the selling price per unit and fixed costs are $303,000. c. Management believes that a selling price of $7.60 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)
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