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Klean N'Kind Corporation sells one product which has a sales price of $250 each. The company operates with variable costs for this one product of
Klean N'Kind Corporation sells one product which has a sales price of $250 each. The company operates with variable costs for this one product of $200 per unit. The company's monthly fixed costs are $15,000. The applicable tax rate is 20%. Required: Using the Contribution Margin approach perform the following: 1. Calculate the contribution margin per unit. (1 Mark) 2. Given a desired after tax profit of $68,000, compute the before tax profit. (2 Marks) 3. Calculate the sales units needed to achieve the after-tax profit of $68,000. (1 Mark) 4. Compute the contribution margin ratio. (1 Mark) 5. Using your answer to Part 4, calculate the dollar sales needed to achieve an after-tax profit of $68,000. (1 Mark) 7 FI TE i B I E E
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