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Please help answer question 5 and 6. Please provide work and explanation so i can learn. Thank You!!!! QuickCut makes lawnmowers used for commercial lawn
Please help answer question 5 and 6. Please provide work and explanation so i can learn. Thank You!!!!
QuickCut makes lawnmowers used for commercial lawn care. It reported the following information for 2023. QuickCut's inventory levels are zero at the beginning and end of every month. It has the capacity to produce 1,500 lawnmowers per year, but currently produces and sells 1,250 mowers per year. It expects that demand will stay the same for the next several years. 4. Compute QuickCut's breakeven point in revenue. CMR=RevenveRevenve-VC=875,000875,000518,750=0.41BEBE=CMRFixedcosts=0.41256,250=625,000 5. Suppose QuickCut's annual sales volume decreased by 20%. By what dollar amount will net operating income decrease? 6. Refer to the original information in the box. Suppose QuickCut's income tax rate is 25%. Compute the revenue Quickcut needs to generate to earn an after-tax net operating income of $180,000Step by Step Solution
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