Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company Y gave the following information to its management accounting department to make a cost profit volume analysis about the company Sales In units Sales
Company Y gave the following information to its management accounting department to make a cost profit volume analysis about the company Sales In units Sales Variable manufacturing overhead in units Unit variable cost for overhead Fixed Cost [factoryl per unit Units produced Production Capacity Selling fixed cost per unit Prepaid insurance cost for factory Variable cost [Selling) per unit Supplies 5.000 Seco S25 $40 2,800 300 $27 $10 3700- 3500 5500 units $8.00 $1500 $ 5.00 $2500 REQUIRED 1. Calculate CM per unit; CMR 2. Determine the breakeven point in units and $ 3. Calculate margin of safety in $ & %. 4. The sales manager believes that the company could increase sales by 700 800 units if advertisement increased by $7500 and variable cost per unit for the sales increase will be $2.00. Should the company increase advertising expenses? $3.00 5. Determine sales revenue in units and $ necessary to generate after-tax profit of $15,000 6. Determine the sales revenue in units and $ necessary if the company wants to base its target profit on before tax profit. The after tax profit is $28000 $250 and tax rate is 12% 15.1
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