Jefferson, Inc. Assume Jefferson, Inc. produces tennis balls and sells a 24 can case (72 balls) for $75 per case. Variable Costs per Case A. Determine the Unit Contribution Margin and the monthly break-even point in units Direct Materials Direct Labor Variable Overheads Fixed Costs per Month Salaries $ 30,000 Selling & Adminstrati $ 9,000 Fixed Overheads $ 6,000 $ 45,000 $ 12.00 $ 8.00 $ 10.00 $ 30.00 Break-even point = Fixed Cost 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 Required dollar sales Fixed Costs plus Desired profit Contribution Margin Ratio Required Unit Sales = ixed Costs + Desired before-tax prol Contribution Margin Required dollar sales = ( $+$)/($1$) = ($1$) 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 $1$ = cases sold cases *$ Check Sales Variable Costs 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 = { $ + $70.X = = $ Unit sales price = $ Desired Unit Sales X Units