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I am struggling with this question, I think I am making it more difficult, please help guide me with the 4 segments of this question
I am struggling with this question, I think I am making it more difficult, please help guide me with the 4 segments of this question
thank you
onic Charge, is a newly organized manufacturing business that plans to manufacture and sell 60,000 units per year of a new produc The following estimates have been made of the company's costs and expenses (other than income taxes) Variable per Unit Fixed Manufacturing costs Direct naterials Direct labor Manufacturing overhead s 25 15 s see,ee0 Period costs: Selling expenses Adninistrative expenses 3e8,806 Totals 8e, eeg Required: a. What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations? (Hint: First compute the required contribution margin per unit.) b. At the unit sales price computed in part a. how many units must the company produce and sell to break even? (Assume all units produced are sold.) c. What wil be the margin of safety (in dollars) if the company produces and sells 60,000 units at the sales price computed in part a? d. Assume that the marketing manager thinks that the price of this product must be no higher than $60 to ensure market penetration. Will setting the sales price at $60 enable lonic Charge to break even, given the plans to manufacture and sell 60,000 units? Complete this question by entering your answers in the tabs below Required A Required B Required C Required D ?PrRY 1or 4H? Next > acerStep by Step Solution
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