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Greenwald limited manufactures a variety of consumer products, including handsoaps and UV sanitizers. Based on an monthly volume of 10000 units, the predicted cost per
Greenwald limited manufactures a variety of consumer products, including handsoaps and UV sanitizers. | |||||||
Based on an monthly volume of 10000 units, the predicted cost per unit of an UV sanitizer follows. | |||||||
Direct materials | $13.50 | ||||||
Direct labor | $3.50 | ||||||
Factory overhead | $9.50 | ||||||
Total | $26.50 | ||||||
These cost predictions include $15000 in facility-level fixed factory overhead averaged over 10000 units. | |||||||
In addition to facility-level fixed factory overhead, monthly fixed selling and administrative cost totals $26,000. | |||||||
UV sanitizers are currently sold at $50 per unit. | |||||||
(a) | What is the unit contribution margin of UV sanitizer? Round the number to the nearest cent. | ||||||
$ | |||||||
(b) | How many units of air purifiers should Greenwald sell to at least breakeven in a month? Round up your number. | ||||||
At least | units | ||||||
(c) | Assuming an income tax rate of 20 percent, what dollar sales volume is currently required to obtain an after-tax profit of $4,000? | ||||||
Round the amount to the nearest cent. | |||||||
$ | |||||||
(d) | In the absence of income taxes, what sales volume in dollar amount will provide the same profit of $4000? | ||||||
Round the amount to the nearest cent. | |||||||
$ |
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