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Problem 1) Basic CVP Analysis Jupiter Game Company manufactures and sells pocket electronic games. Jupiter sold 25,000 units last year. The following is its operating
Problem 1) Basic CVP Analysis Jupiter Game Company manufactures and sells pocket electronic games. Jupiter sold 25,000 units last year. The following is its operating information for the last year. Sales $625,000 (25,000 units x $25/unit) Variable cost $375,000 (25,000 units x $15/unit) Contribution Margin $250,000 Fixed cost $150,000 Operating Income $100,000 Required) A) What was the company's breakeven in both units and dollars last year? B) How much of sales revenue would the company have had to generate last year to earn pre-tax operating income of $140,000? C) Assume that the combined tax rate is 40%. Determine required sales units for after-tax operating income of $120,000
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