Question
Cohen Company produces and sells socks. Variable cost is $3.00 per pair, and fixed costs for the year total $48,500. The selling price is $5
Cohen Company produces and sells socks. Variable cost is $3.00 per pair, and fixed costs for the year total $48,500. The selling price is $5 per pair.
Required:
1. Calculate the breakeven point in units. (Do not round intermediate calculations.)
2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.)
3. Calculate the units required to make a before-tax profit of $29,000. (Do not round intermediate calculations.)
4. Calculate the sales dollars required to make a before-tax profit of $25,100. (Do not round intermediate calculations.)
5. Calculate the sales, in units and in dollars, required to make an after-tax profit of $15,100 given a tax rate of 30%. (Do not round intermediate calculations. Round sales in units up to the nearest whole number and sales in dollars to the nearest whole dollar.)
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Answer Cohen Company Calculations 1 Breakeven Point in Units BEP Units We can use the formula BEP Un...Get Instant Access to Expert-Tailored Solutions
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