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Ski and Fun is considering the production of a new type of in-line skate. The skates sell for $90 per pair and direct materials and
Ski and Fun is considering the production of a new type of in-line skate. The skates sell for $90 per pair and direct materials and direct labour will cost about $47.20 per pair Fixed costs will increase by $984,000 per year because a new manufacturing assembly line will be required. The income tax rate is 35% a) What is the breakeven point for the new skate? b) How many units must Ski and Fun sell to earn $492,000 after taxes? c) List the assumptions made in this CVP analysis. Ft T: B 1 Net page vous page
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