Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150, 000 per month Variable selling & administrative costs $ 6 Fixed

image text in transcribed

Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150, 000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs 120, 000 per month a) How many units must Nova Manufacturing produce and sell in order to break-even? b) If Nova Manufacturing produces and sells 30,000 units, what is the margin of safet in units? c) How many units must Nova Manufacturing produce and sell in order to achiere a profit of $30,000 per month d) How many units must Nova Nanufacturing produce and sell in order to earn $45,000 in after- tax operating profits? Assume tax rate : 25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

Students also viewed these Accounting questions