Question
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.
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