Question
selling -20 direct material -5 direct labor-4 variable overhead- 2 fixed cost- 4 variable selling and administrative-1 fixed selling And administrative -2 based on the
selling -20
direct material -5
direct labor-4
variable overhead- 2
fixed cost- 4
variable selling and administrative-1
fixed selling And administrative -2
based on the normal capacity of 10,000
required
1.compute the contribution margin per unit and ratio
2.construct the companys contribution approach income statement assuming that i was able to sell 10,000
3. Compute the company's break even point.
4. how many unit's does the company needed to sell if it wants earn a before tax profit of 20,00 ?
5. if the company is subject to a 30% tax rate how many unit's does the company needed to sell if it wants to eat. an after tax profit of 17,500
6. compute the company's margin of safety and degree of operating leverage Under the three income situation mentioned above
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