Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Could use some help with explination on how to solve the following: Flash Drive INC. produces flash drives. Each unit sells for $5.20 The per

Could use some help with explination on how to solve the following:

Flash Drive INC. produces flash drives. Each unit sells for $5.20

The per unit variable cost of manufacturing is $2.40

Monthly fixed costs of all operations are $156,000

Flash Drive anticipates an income tax rate of 30%

The (before tax) contribution margin per unit is?

In August, the company sold 5,000 more flash drives than planned.

What is the expected effect on after tax profit of selling the additionaldrives? Assume the company's normal sales level is profitable.

Calculate the (before tax) contribution margin ratio associated with

one flash drive.

In October, the company had sales that were $125,000

higher than planned. What is the effect on after tax profit related

to the additional sales? Assume the company's normal sales

level is profitable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions

Question

Will the company help with relocation expenses?

Answered: 1 week ago