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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
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 | $80,000 | |
Fixed selling and administrative | 24,000 |
a. How many garden sheds must the company sell to break even? ____ garden sheds b. If Hamlet Houses management wants to earn a pre-tax profit of $80,000, how many garden sheds must be sold? ____ garden sheds c. If Hamlet Houses management wants to earn a pre-tax profit of $112,000, how many garden sheds must be sold? ____ garden sheds
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