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Persimmon, Inc., produces deluxe tennis rackets. The following information is available for 20X8 operations. PERSIMMON, INC. INFORMATION RELATED TO OPERATIONS FOR YEAR 20X8 Sales Price
Persimmon, Inc., produces deluxe tennis rackets. The following information is available for 20X8 operations. PERSIMMON, INC. INFORMATION RELATED TO OPERATIONS FOR YEAR 20X8 Sales Price Per Unit $ Variable Manufacturing Cost Per Unit Total Fixed Manufacturing Overhead Per Year Total Fixed Selling and Administrative Costs Per Year 155.00 85.00 800,000 600,000 In addition, the company pays its sales representatives a 10% commission on the sales price for each racket sold. The company has a marginal tax rate of 35%. REQUIRED: (1) (2) (3) What is the company's break even point in units? Round your answer up to the next whole unit. How many units would the company have to sell in order to earn a $250,000 before tax profit? Round your answer up to the next whole unit. How many units would the company have to sell in order to earn a $70,000 after tax profit? Round your answer up to the next whole unit. Suppose that Persimmon, Inc. decides to increase its advertising, a fixed selling cost, by $50,000, and reduce its commission that it pays to sales representatives to 8%. What is the company's new break even point? Round your answer up to the next whole unit
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