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Midterm test October 2021 (1) - Word ut References Mailings Review View Help Tell me what you want to do A A AB- - 5.
Midterm test October 2021 (1) - Word ut References Mailings Review View Help Tell me what you want to do A A AB- - 5. 2! I A AaBbcc AaBbcc AaBb AaBbccc Normal T No Spac... Heading 1 Heading 2 Styles Paragraph 6.5 5. Lilibet Enterprises Lid, currently manufactures and sells large mailboxes that are used instead of delivering door to door in residential areas Demand for these units. known as community mailboxes, is increasing as new subdivisions are added, and Canada Post negotiates to reduce the areas served by door-to-door delivery At the present time, a standard size community mailbox sells for $4,000. The variable manufacturing cost per unit is currently $2,600 and variable selling costs total $74 per unit. Fixed manufacturing costs incurred by this product line total $150,000 per year, and fixed selling costs specific to this product amount to $25,000 per year. Required: a) Calculate the breakeven point for the community mailboxes, in units sold and sales dollars b) How many units will need to be sold to generate a before-tax profit of $300,000? What is the total sales revenue that will be generated at this sales volume? Lilibet pays income tax al 25% if its target after-tax profit is $500,000, what is the before tax profit it must generate? d) Lilibet is considering increasing the size of the community mailbox. A larger size is preferred by Canada Post It expects to be able to double the size with an increase in the variable manufacturing cost per unit of $1,200 Lilibet expects to be able to increase the selling price to $7,800, with an increase to variable selling costs of $50 per unit. Neither fixed manufacturing nor fixed selling costs are not expected to change What is the expected profitif Litbet is able to sell 400 of the larger community mailboxes annually? 3.5 1 4 Accessibility Investigate o O hp
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