Question
GoRebs, LLC produces Hey Reb! puppets. Each puppet sells for $20.00. Fixed overhead costs are $65,000 per year. Fixed selling and administrative costs are $10,000
GoRebs, LLC produces Hey Reb! puppets. Each puppet sells for $20.00. Fixed overhead costs are $65,000 per year. Fixed selling and administrative costs are $10,000 per year. Variable unit costs (variable costs per puppet) are as follows:
Fabric ............................ $4.00
Stuffing .......................... $2.00
Other materials .................. $3.50
Packaging material ............. $2.00
Selling commission ............ $1.508.
8. How many puppets must GoRebs, LLC sell to break even (Round your answer upto the nearest whole unit if necessary)? _________________
9. How much is total sales revenue at the break-even point?_________________
10. Assume GoRebs, LLC has a desired after-tax net income of $550,000 and a tax rate of 40%. How many puppets must the company sell? (Round your answer up to the nearest whole unit if necessary) _________________
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