Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cut 09 Ali Bakery is c of a new line of pies to its product offerings lt is expected that each pie ad'sel for SR
Cut 09 Ali Bakery is c of a new line of pies to its product offerings lt is expected that each pie ad'sel for SR 10 and the variable costs per pie will be SR3 e interest expense associated with this ine of SR3,000, and expects to sell point in beth units and Rival 14 Less: Variable Costs 15 Less: Fixed Costs 16 ERIT 20,000 EBIT: Earaings Before Interest & Taxes cut illi.IITimes New Rom :112 -ANKg y Format Painter B 1 uE.no-A-| Copy Paste Clipboard Font C9 Ali Bakery Projected Income Statement for Pie Line For the Year Ended Dec. 31, 2010 10 12 13 Sales 14 Less: Variable Costs 15 Less: Fixed Costs 16 EBIT 17 Less: Interest Expense 18 Earnings Before Taxes (EBT 19 Less: Taxes 20 Net Income 21 ?2? 20,000 22? 3,000 ?22 2?? Additional Data 23 Price per Unit 24 Estimated Pie Sales in Units 25 Variable Cost per Pie 26 Tax Rate 27 28 Break-Even Point (Units) 29 Break-Even Point (SR) 10,00 2.500 3.00 35% b) c) 31 Target Level of EBIT 15,000 92 Unit Sales Needed to Reach Target EBIT Raacdy 35 36 37 38 39 40 Fixed Cost Per Period (Selling Price Per Unit - Variable Cost Per Unit) Break-Even Point in Quantity (Units) x Selling Price Per Unit 41 42 43 45 Ready
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