CVP analysis

Jack makes electric golf carts, sold for $4,000 each. Relevant cost data are as follows: Direct materials (per unit) $1,600 Fixed manufacturing overhead (total) $200,000 Direct labor (per unit) 500 Fixed selling expenses (total) 80,420 Variable manufacturing overhead 250 Variable selling costs (per unit) 25 Jack pays income taxes at the rate of 35 percent. (1) Number of carts that need to be sold to earn $500,000 after tax carts (2) Revenue required to yield after tax income of 20% of revenue? $ 1. (3 points] Compute the number of carts that need to be sold to earn $500,000 after tax. 2. (3 points) Determine the revenue at which after tax profit equals 20% of sales. Question 2 Part B (9 points) Howe's wholesalers sells baseball bats and gloves. Historical data show that it sells six bats for every t gloves. Relevant cost and price data are as follows Contribution margin per bat $4:00 Selling price per bat $10.00 Contribution margin per glove $5.00 Selling price per glove $15,00 Fixed costs connected with these products amount to $170,000 per year. Ignore taxes (a) Number of bats that need to be sold to earn $127,500 bats (b) Profit earned with changed sales mix S (G) (3 points) Determine the number of bats that must be sold to earn $127,500 from these two products