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Part I Exercise #1 Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at 325 per unit. The variable cost
Part I Exercise #1 Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at 325 per unit. The variable cost per unit is $12 and annual fixed cost is $345,000. Asstnne a tax rate of 23%- Required: Calculate the following: [a] Breakeven point in dollars- [b] Margin of safety in dollars. [c] Number of units Ratchet Ltd has to sell to earn an after-tax prot of 3420000. Exercise #1 Clank Bicycles is a bicycle retailer that sells road bikes and mountain bikes. Mountain bikes accounts for 50% of the store's total sales volume. The selling price and variable cost per unit are as follows: W \" in mutual fixed costs are $113,400. Ignore tax effects and assume a constant sales mix. Required: [a] Calculate the breakeven point in units and dollars. {b} Calculate hov.r mam.r bicycles of each type needed to be sold to earn a target net prot of 8340.200? Hint: Same formula as a single product, but divided b}r 'weighted average unit contribution margin= instead of 'unit contribution margin
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