Question
please show ALL work 1. A company produces a single product to sell for $6.00 per unit. The company incurs $18.000 in fixed costs, and
please show ALL work
1. A company produces a single product to sell for $6.00 per unit. The company incurs $18.000 in fixed costs, and variable costs run $3.00 per unit. The company has a tax rate of 40%
a. Compute the contribution margin per unit
b. Compute the break-even point in units
c. Compute the break-even point in dollars
d. Compute the target units assuming management would like a before tax profit of $15.000
e. Compute the target units assuming management would like an after tax profit of $15.000
f. Compute the contribution margin ratio
g. Compute the total sales necessary to produce an after-tax profit of $15,000
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