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need help with all questions a-f Eagle Company makes the MusicFinder, a sophisticated satellite radio. Eagle has experienced a steady growth in sales for the

need help with all questions a-f
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Eagle Company makes the MusicFinder, a sophisticated satellite radio. Eagle has experienced a steady growth in sales for the past five years. However, Ms. Luray, Eagle's CEO, belleves that to maintain the company's present growth will require an aggressive advertising campaign next year . To prepare for the campaign, the company's accountant, Mr. Bednarik, has prepared and presented to Ms. Luray the following data for the current year, year 1 5 91 19 153 5 Variable costs Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) Total variable costs (per unit) Fixed costs annual) Manufacturing Sallinn Administrative Total Fixed costs annual) Selling orice per unit) Expected sales revenus year(29,000 units) 3 194,000 22.000 79,00 $11.977,000 Eagle has an income tax rate of 30 percent Ma. Luray has set the soles torget for your 2 to level of $14,042,000 (or 34 000 radion) Required: a. What is the projected after tax operating profit for year 13 b. What is the break-even point in units for year 17 c. Ms Luroy believes that to attain the sales target (34000 radios) will require adaluonal selling expenses of $283.000 for advertising in year 2. with all other costs remaining constant. What will be the after-tax operating profit for year if the firm spends the additional $283,000? d. What will be the break even point in sales dollars for year 2 of the firm spends the additional 5283.000 for advertising e. If the firm spends the additional $283,000 for advertising in year 2. what is the sales level in dollars required to equal the year 1 after-tax operaung profit? 1. Ata sales level of 34,000 units, what is the maximum amount the firm can spend on advertising to earn an after-tax operating profit of $7570007 Eagle Company makes the MusicFinder, a sophisticated satellite radio Eagle has experienced a steady growth in sales for the past five years. However, Ms. Luray. Eagle's CEO, believes that to maintain the company's present growth will require an aggressive advertising campaign next year. To prepare for the campaign, the company's accountant, Mr. Bednarik, has prepared and presented to Ms. Luray the following data for the current year, year 1: 91 43 19 3 153 Variable costs: Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) Total variable costs (per unit) Fixed costs annual) Manufacturing Selling Administrative Total fixed costs (annual) Selling price (per unit) Expected sales revenues, year 1 (20,000 units) $ 394,000 282,000 797 000 $ 1,473,000 $ 11,027,00 Eagle has an income tax rate of 30 percent Ms. Luray has set the sales target for year 2 at a level of $14,042,000 (or 34,000 radios) Required: .. What is the projected after-tax operating profit for year 1? b. What is the break-even point in units for year 1? c. Ms Luray believes that to attain the sales target (34.000 radios) will require additional selling expenses of $283,000 for advertising In year 2. with all other costs remaining constant What will be the after-tax operating profit for year 2 if the firm spends the additional $283.000? d. What will be the break-even point in sales dollars for year 2 If the firm spends the additional $283,000 for advertising? e. If the firm spends the additional $283,000 for advertising in year 2. what is the sales level in dollars required to equal the year 1 after-tax operating profit? . At a sales level of 34.000 units, what is the maximum amount the firm can spend on advertising to earn an after-tax operating profit of $767,000

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