Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Auditing Pocket Guide

Authors: J. P. Russell

1st Edition

0873895606, 978-0873895606

More Books

Students also viewed these Accounting questions

Question

e. What difficulties did they encounter?

Answered: 1 week ago