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Schimmel Company provides the following information about its single product. Targeted after tax income $35,000 Tax rate 30% Selling price per unit $7.85 Variable cost
Schimmel Company provides the following information about its single product. Targeted after tax income $35,000 Tax rate 30% Selling price per unit $7.85 Variable cost per unit $6.10 Total fixed cost $96,300 What is the minimum number of units that must be sold to earn the desired after tax income at the Schimmel Company? 65,000 83,600 86,300 55,000 None of these Vango Industries sells two products, Basic models and Deluxe models. Basic models sell for $40 per unit with variable costs of $30 per unit. Deluxe models sell for $48 per unit with variable costs of $40 per unit. Total fixed costs for the company are $72,000. Vango Industries typically sells four Basic models for every Deluxe model. Assuming no change in the sales mix, how many Basic models does Vango need to sell to break even? 1,500 units 6,000 units None of these 8,000 units 4,000 units
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