Question
I need help answering the following question: The following information is available for the Foster Co. Product Selling Price: $90 Variable Cost Per Unit: $43
I need help answering the following question:
The following information is available for the Foster Co.
Product Selling Price: $90
Variable Cost Per Unit: $43
Monthly Fixed Costs: $365,000
Tax Rate: 30%
Required:
1. Calculate the contribution margin.
2. Calculate the contribution margin ratio.
3. Calculate the break-even point in units.
4. Calculate the break-even point in dollars.
5. Calculate the sales in units required to produce an after tax income of $20,000.
6. Calculate the sales in dollars required to produce an after tax income of $20,000.
7. Calculate the margin of safety if the expected sales for the month are $800,000.
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