CVP

Hamlet House makes portable garden sheds that sell for $$1,800$ each. Costs are as follows:

Per Unit Total

Direct material $$800$

Direct labor $90$

Variable production overhead $60$

Variable selling and administrative cost $50$

Fixed production overhead $$480,000$

Fixed selling and administrative $144,000$

a$.$ How many garden sheds must the company sell to break even? Answer

garden sheds

b$.$ If Hamlet House$$s management wants to earn a pre$-$tax profit of $$480,000,$ how many garden sheds must be sold? Answer

garden sheds

c$.$ If Hamlet House$$s management wants to earn a pre$-$tax profit of $$672,000,$ how many garden sheds must be sold? Answer

garden sheds