Question
Oradell Company sells its single product at $60 per unit and incurs the following costs per unit of product: Direct material $16 Direct labor 12
Oradell Company sells its single product at $60 per unit and incurs the following costs per unit of product:
Direct material $16
Direct labor 12
Variable manufacturing overhead 7
Selling expenses 5
Ordells annual fixed cost is $880,000, and Oradell is subject to a 30% income tax rate
a)The production and sales volume of $4,000 units of product per month would result in an annual after tax income (loss) for Oradell Company of a. $80,000 b. $(800,000) c. $56,000 d. $(560,000)
b) The number of units of product that Oradell Company must sell annually to breakeven is a. 22,000 units b. 44,000 units c. 35,200 units d. 30,800 units
c) The annual sales revenue required by Oradell Company in order to achieve after-tax net income of $224,000 for the year is a. $3,600,000 b. $3,312,000 c. $1,656,000 d. $3,110,400
please how do i do this?
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