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Esposito Company sells its products for $690 per unit. Costs for last year, when 40,000 units were produced, are as follows: Direct labor Direct materials
Esposito Company sells its products for $690 per unit. Costs for last year, when 40,000 units were produced, are as follows: Direct labor Direct materials Variable overhead Fixed overhead Variable SG&A Fixed SG&A Per unit $ 70.00 $150.00 $ 50.00 $100.00 $ 30.00 $ 95.00 Total $2,800,000 $6,000,000 $2,000,000 $4,000,000 $1,200,000 $3,800,000 How much profit would Esposito earn if 30,000 units were sold? How many units would Esposito need to sell to break even? How many units would Esposito need to sell to earn a before-tax profit of $8,385,000
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