Question 1

YUX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2020:

Net sales

$420,000Selling expensesvariable

$22,000Direct materials

97,500Selling expensesfixed

19,000

Direct labour

62,700Administrative expensesvariable

9,400Manufacturing overheadvariable

18,400Administrative expensesfixed

9,600

Manufacturing overheadfixed

11,720

Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars.(Round answers to 0 decimal places, e.g. 5,275.)

Monthly break-even in units

unitsMonthly break-even in dollars$

Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit.(Round answers to 0 decimal places, e.g. 15 or 15%.)

Contribution margin ratio

%Annual margin of safety ratio

%Annual profit$

Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant.(Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in profit

%

Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b).(Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in unit sales

%

Determine the sales required to earn an operating income of $337,200 after tax. YUX Corporation's income tax rate is 40%.

Sales required to earn an operating income of $337,200$