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Need answer for #e. Thanks 3. Hayden Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed
Need answer for #e. Thanks
3. Hayden Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed costs equal $240,000 per year. Sales are currently 40,000 units annually, and the income tax rate is 40 percent. Required: a. Calculate the contribution margin per unit. b. Calculate break-even in units. c. Calculate break-even in sales dollars d. Calculate the current after-tax net income. e. The company is considering a 10% drop in the selling price that it believes will raise units sold by 15%. Assuming all costs stay the same, what is the impact on income if this change is made? f. How many units need to be sold to earn a pre-tax operating income of $100,000Step by Step Solution
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