o compute how many pairs of gloves must be sold overall if the company wants to make an after tax target profit of 56 300 and the tax rate is 30%. Assume that the sales mix remains the same as shown above. 2.480 2. The company has developed another type of gloves that provide better protection in extreme cold. Toasty, which the company plans to sell for $17.00 per pair. At this price, the company expects to sell 1,000 pairs per month of the product. The variable expense would be $13.60 per pair. The company's fixed expenses would not change. a. Prepare another contribution format income statement, including sales of Toasty (sales of the other two products would not chang (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Cozy Toasty $ 0 0.00 0 0.00 500 .00 Variable expenses Contribution margin Fixed expenses Net operating incom !!! Next > Prey 5 of 8 O n Sales Udla lof the two products appear below COZY $ 6.80 $ 9.00 Selling price per pair Variable expenses per pair Number of pairs sold monthly 3,000 units 1,000 units Fixed expenses are $2,160 per month. Required: 1. Assuming the sales mix above, do the following: . Prepare a contribution fo. na income statement showing both dollars and percentage columns for company as a whole. (Round percentage answers to 2 decimal places.) Total WARM HANDS Contribution Income Statement Warm Cozy % $ 18.000 100.00 9.000 4500 25.00 500 $ 13,500 75.00 $ 4.500 Sales Variable expenses Contribution margin Fixed expenses Operating income 100.00 15 127.000 50.00 9.000 50.00 18.000 100.00 33 30 66 70 2.160 S 15 840 o compute how many pairs of gloves must be sold overall if the company wants to make an after tax target profit of 56 300 and the tax rate is 30%. Assume that the sales mix remains the same as shown above. 2.480 2. The company has developed another type of gloves that provide better protection in extreme cold. Toasty, which the company plans to sell for $17.00 per pair. At this price, the company expects to sell 1,000 pairs per month of the product. The variable expense would be $13.60 per pair. The company's fixed expenses would not change. a. Prepare another contribution format income statement, including sales of Toasty (sales of the other two products would not chang (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Cozy Toasty $ 0 0.00 0 0.00 500 .00 Variable expenses Contribution margin Fixed expenses Net operating incom !!! Next > Prey 5 of 8 O n Sales Udla lof the two products appear below COZY $ 6.80 $ 9.00 Selling price per pair Variable expenses per pair Number of pairs sold monthly 3,000 units 1,000 units Fixed expenses are $2,160 per month. Required: 1. Assuming the sales mix above, do the following: . Prepare a contribution fo. na income statement showing both dollars and percentage columns for company as a whole. (Round percentage answers to 2 decimal places.) Total WARM HANDS Contribution Income Statement Warm Cozy % $ 18.000 100.00 9.000 4500 25.00 500 $ 13,500 75.00 $ 4.500 Sales Variable expenses Contribution margin Fixed expenses Operating income 100.00 15 127.000 50.00 9.000 50.00 18.000 100.00 33 30 66 70 2.160 S 15 840
