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