Question
Sebastian & Sons Ltd manufactures and sells a single product. This product has the following operational data. Unit sales price $50 Variable manufacturing cost per
Sebastian & Sons Ltd manufactures and sells a single product. This product has the following operational data.
| Unit sales price | $50 |
| Variable manufacturing cost per unit | $25 |
| Fixed manufacturing costs | $72 000 |
| Variable selling cost per unit | $2 |
| Fixed selling costs | $57 000 |
| Marginal tax rate | 20 % |
Calculate the number of units required to achieve a pre-tax profit of $125 000
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Hospitality Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
2nd Edition
9780470598092, 470083603, 978-0470083604
