Question
The Computer Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows: Variable Costs per card: Fixed
The Computer Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows:
| Variable Costs per card: | Fixed Costs per Month: | |||
| Manufacturing |
|
| Factory overhead | $7,000 |
| Direct materials | $0.30 |
| Selling and admin. | 3,000 |
| Direct labor | 0.25 |
|
|
|
| Factory overhead | 0.25 |
|
|
|
|
| $0.80 |
|
|
|
| Selling and admin. | 0.15 |
|
|
|
| Total | $0.95 |
| Total | $10,000 |
Computer Supply produced and sold 10,000 cards during October 2021 and did not have any beginning or ending inventories.
Required:
If Computer Supply is subject to an income tax of 22 percent, determine the dollar sales volume (to the nearest whole number) required to earn a monthly after-tax profit of $15,000.
| A. | $55,678 | |
| B. | $35,092 | |
| C. | $42,734 | |
| D. | $54,509y |
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Financial Accounting
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield
10th Edition
073036321X, 978-0730363217
