Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 5 YUX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2020: Net sales Direct
Question 5 YUX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2020: Net sales Direct materials $364,000 74,200 57,500 21,200 9,340 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $19,400 21,900 9,700 9,800 Direct labour Manufacturing overhead-variable Manufacturing overhead-fixed 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 units Monthly 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 $328,200 after tax. YUX Corporation's income tax rate is 40%. Sales required to earn an operating income of $328,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started