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Question 5 YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020: Net sales $606,000
Question 5 YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020: Net sales $606,000 Selling expenses-variable $20,300 Direct materials 193,400 Selling expenses-fixed 18,300 Direct labour 59,100 Administrative expenses-variable 9,300 Manufacturing overhead-variable 20,900 Administrative expenses-fixed 10,900 Manufacturing overhead-fixed 30,200 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 o 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 $60 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 $391,800 after tax. YUX Corporation's income tax rate is 40%. Sales required to earn an operating income of $391,800
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