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Please answer question C Question 32 Martin Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the
Please answer question C
Question 32 Martin Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2020: $41.00 22.00 Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs 22.00 $85.00 Fixed costs Manufacturing Marketing, distribution, and customer service Administrative $2,575,000 525,000 745,000 $3,845,000 Total fixed costs $185 Selling price per pair of shoes Expected revenues, 2020 (50,700 units) Income tax rate $9,379,500 40% (a) Your answer is correct. Calculate the projected operating income before tax for 2020. Operating income before tax 1225000 SHOW ANSWER LINK TO TEXT LINK TO TEXT (b) Your answer is correct. Calculate the break-even point in units for 2020. Break-even point 38450 units SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 2 used (c) The company controller has set the revenue target for 2021 at $10,415,500 (or 56,300 pairs). He believes an additional marketing cost of $447,000 for advertising in 2021, with all other costs remaining constant, will be necessary to attain the revenue target. Calculate the operating income for 2021 if the additional $447,000 is spent and the revenue target is met. Operating income $Step by Step Solution
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