Jefferson, Ic. Assume Jefferson, Inc. produces tennis balls and sells a 24 can case (72 balls) for $75 per case. Variable Costs per Case Fixed Costs per Month A. Determine the Unit Contribution Margin and the monthly break-even point in units Direct Materials Direct Labor Variable Overheads $ 30,000 Selling & Adminstrati $ 9,000 $ 6,000 $ 45,000 $ 12.00 8.00 Salaries Break-even point = Fixed Cost $ $ 10.00 $ 30.00 Fixed Overheads Unit Contribution Margin $ 45,000 [$ - $) Break-even point = Fixed Cost Unit Contribution Margin B. Determine the monthly dollar sales required for a monthly profit (before taxes) of $11,250 Required dollar sales : Fixed Costs plus Desired profit Contribution Margin Ratio Fixed Costs plus Desired profit Contribution Margin Ratio Required dollar sales Required Unit Sales = ixed Costs + Desired before-tax prol Contribution Margin Required dollar sales = ( $ + $)!( $/$) ($ } $ ] = A. Determine the Unit Contribution Margin and monthly break-even point in units C. Determine the monthly dollar sales required for a monthly profit (before taxes) of $11,250 D. Assuming a 30% income tax rate, determine the monthly unit sales required to produce a profit (after-tax) of $6,300 Check Sales $I$ = cases sold Variable Costs cases *$ Contribution Margin Fixed Costs Before-tax Profit $11,250 C. Assuming a 30% income tax rate, determine the monthly unit sales required to produce a profit (after-tax) of $6300 Desired before-tax profit (Gross up) = $6,300/ (1-0.30) = $9,000 Required dollar sales Fixed Costs + Desired before-tax profit Contribution Margin Ratio |= ( $ + $ ] } 0.X = $ Unit sales price = Desired Unit Sales X Units $4