Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate how many soaps the company needs to sell to reach its desired after tax profit per year? You are helping a luxury handmade soap
Calculate how many soaps the company needs to sell to reach its desired after tax profit per year?
You are helping a luxury handmade soap company conducting CVP analysis. Complete the table below with given information. Goat Milk Soap Moisturiser Care Soap Balanced & Mild Soap Total Expected Sales Volume (unit) per month 190 100 230 Selling Price per soap $ 45.00 $ 60.00 $ 55.00 Variable Cost per soap $ 25.00 $ 35.00 $ 20.00 Contribution Margin per soap $ 20.00 $ 30.00 $ 35.00 Expected Sales Mix Percentage 36.54 % 19.23 % 44.23 % WACM $ 7.31 $ 5.77 $ 15.48 $ 28.56 Rent and equipment cost per year $ 10,900 Full time supervisor salary per year $ 51,000 Website maintenance cost per year $ 4,500 Tax Rate 30 % Desired after tax profit per year $ 40,000 How many soaps the company needs to sale to reach its desired after tax profit per year? |Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started