PLEASE PROVIDE SOLUTION

39

A company sells a product for $9.00 which has a variable manufacturing cost of $3.00 per unit. Last year, the company needed to sell 20,000 shirts to break even. Assuming the company is subject to a 40% tax rate and wishes to earn $22,500 profit after tax for the coming year, what sales will be required?

Group of answer choices

$257,625

$236,250

$213,750

$180,000

41

Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:

Selling price per unit $35

Manufacturing cost $4,000 per month plus $17 per unit

Administrative expense $2,500 per month plus $2.50 per unit

Sales commissions 15% of sales

Advertising expense $2,000 per month

If Buffo expects to produce and sell 5,000 units next month, the expected net operating income would be:

Group of answer choices

$51,250

$42,750

$71,000

$62,500

PLEASE PROVIDE SOLUTION