Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P6-7B. Break-Even and Net Income Planning The controller of Wright Company is preparing data for a conference concerning certain independent aspects of its operations. Required
P6-7B. Break-Even and Net Income Planning The controller of Wright Company is preparing data for a conference concerning certain independent aspects of its operations. Required Prepare answers to the following questions for the controller: a. Total fixed cost is $720,000, and a unit of product is sold for $10 in excess of its unit variable L04, 5, 6 cost. What is the break-even unit volume? The company will sell 30,000 units of product-each having a unit variable cost of $14-at a price that will enable the product to absorb $360,000 of fixed cost. What minimum unit sales price must be charged to break even? b. c. Net income before income tax of $150,000 is desired after covering $410,000 of fixed cost Whar d. Net income before income tax is 20% of sales revenue, the contribution margin ratio is 60%, and e. Total fixed cost is $350,000, variable cost per unit is $26, and unit sales price is $50. What dolla minimum contribution margin ratio must be maintained if total sales revenue is to be $1.600.000 the break-even dollar sales is $200,000. What is the amount of total revenue? sales volume will generate an after-tax net income of $60,000 when the income tax rate is 40%
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