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QUE Acco Labrador Company produces a single product. It sold 75,000 units last year with the following results: $1,875,000 Que Accou Sales Variable costs Fixed

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QUE Acco Labrador Company produces a single product. It sold 75,000 units last year with the following results: $1,875,000 Que Accou Sales Variable costs Fixed costs $750,000 300,000 Que Accou 1,050,000 825.000 Ques Accou Operating income before taxes Income taxes (45%) Operating income 371.250 $453.750 Ques Accoun In an attempt to improve its product, Labrador is considering replacing a component part in its product that has a cost of $5 per unit with a new and better part costing $10 per unit during the coming year. A new machine would also be needed to increase plant capacity. The machine would cost $90,000 with a useful life of six years and no salvage value. The company uses straight-line depreciation on all plant assets. VieWV| 8 Accoun Quest (a) Your answer is correct. What was Labrador's break-even point in units last year? Break-even point 20000 units (b) How many units of product would Labrador have had to sell in the past year to earn $247.500 in operating income after taxes? Sales to be made units e Textbook and Media Save for Later Attempts:0 of 3 used Submit Answer (c) Ifit holds the sales price constant and makes the suggested changes, how many units of product must the company sell in the coming year to break even? Break-even units (d) If it holds the sales price constant and makes the suggested changes, how many units of product will Labrador have to sell to make the same operating income before taxes as last year? Required sales units eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer lel if Labrador wishes to maintain the same contribution margin ratio, what selling price per unit of product must it charge next year to cover the increased materials costs? (Round answer to 2 decimal places, eg. 15.25.) Selling price per unit S

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