Question
Maggie Products distributes a single product, a decorative plate whose selling price is $10 and whose variable cost is $6 per unit. The companys monthly
Maggie Products distributes a single product, a decorative plate whose selling price is $10 and whose variable cost is $6 per unit. The companys monthly fixed expense is $7,500. Required: a. Calculate the companys break-even quantity. (3 marks) b. If the companys fixed expenses increase by $500, what would become the new breakeven point in unit sales? (3 marks) c. What will be the break-even point in units if the Target Profit is $10,000 (4 marks) d. What will be the break-even point in units sales if the Target After tax Profit is $7,500. Assume a tax rate of 25% (5 marks)
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