Question
Oriole Enterprises Ltd. has estimated the following costs for producing and selling 15,400 units of its product: Direct materials $77,000 Direct labour 138,600 Variable overhead
Oriole Enterprises Ltd. has estimated the following costs for producing and selling 15,400 units of its product:
Direct materials $77,000
Direct labour 138,600
Variable overhead 30,800
Fixed overhead 30,000
Variable selling and administrative expenses 61,600
Fixed selling and administrative expenses 37,500
Oriole Enterprises income tax rate is 40%. Given that the selling price of one unit is $40, calculate how many units Oriole Enterprises would have to sell in order to break even.
Break-even units enter a number of units for break even ANSWER: 3375
Assume the selling price is $45 per unit. Calculate how many units Oriole Enterprises would have to sell in order to produce operating income of $24,700 before taxes.
Target units enter a number of target units units ANSWER: 3668
Calculate what price Oriole Enterprises would have to charge in order to produce operating income of $27,000 after taxes if 7,500 units were produced and sold.
Oriole Enterprises should charge $enter a dollar amount per unit per unit
Calculate what price Oriole Enterprises would have to charge in order to produce a before-tax operating income equal to 30% of sales if 9,000 units were produced and sold. (Round answer to 3 decimal places, e.g. 15.254.)
Oriole Enterprises should charge $enter a dollar amount per unit rounded to 3 decimal places per unit
Please answer the last two questions
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