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Legrand Company produces hand cream in plastic jars. Each jar sells for $3.40. The variable cost for each jar (materials, labor, and overhead) totals $2.55.
Legrand Company produces hand cream in plastic jars. Each jar sells for $3.40. The variable cost for each jar (materials, labor, and overhead) totals $2.55. The total fixed cost is $58,140. During the most recent year, 81,600 jars were sold.
Required: | |
1. | What is the break-even point in units for Legrand? What is the margin of safety in units for the most recent year? |
2. | Prepare an income statement for Legrands most recent year. |
3. | How many units must be sold for Legrand to earn a profit of $25,500? |
4. | What is the level of sales dollars needed for Legrand to earn operating income of 10% of sales? |
Please help me solve only questions #4. I have looked for references everywhere and cannot figure it out.
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