Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nature's Own makes three types of wood flooring: Oak, Hickory, and Cherry. The company's tax rate is 4 0 percent. The following costs are expected
Nature's Own makes three types of wood flooring: Oak, Hickory, and Cherry. The company's tax rate is percent. The following costs are expected for the year:
Persquareyard expected selling prices are as follows: Oak, $; Hickory, $; and Cherry $ The expected sales mix is as follows:
Oak Hickory Cherry
tableSquare yards,Calculate the breakeven point for the year.,,,
a Calculate the breakeve not hound to the next whole unit.
Note: Round to the
b How many square yards of each product are expected to be sold at the breakeven point?
Note: Round CM to the nearest tenth of a percent.
Oak: square yards
tableHickory:square yardsCherry:square yards
c If the company wants to earn pretax profit of $ how many square yards of each type of flooring would it need to sell? How much total revenue would be required?
Note: Round your answer to the next highest whole unit.
d If the company wants to earn an aftertax profit of $ determine the revenue needed using the contribution margin percentage approach.
Note: Round CM to the nearest tenth of a percent and your final answer to the nearest whole dollar.
$
e If the company achieves the revenue determined in d what is the breakeven point in dollars, and the margin of safety in dollars and as a percentage?
Note: In your breakeven point in dollars calculation, round CM to the nearest tenth of a percent; round your final answer to the nearest whole dollar.
Note: Round margin of safety in dollars to the nearest whole dollar.
Note: Round the margin of safety percentage to the nearest tenth of a percent for example, round to
Breakeven in dollars:
Margin of safety in dollars:
Margin of safety percentage:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started