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The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company: Sales price = $5,645 Direct materials cost (including
The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company: Sales price = $5,645 Direct materials cost (including purchased components) = $905 Direct labor cost = $234 Facilities costs (for a highly automated plant; mainly includes rent, insurance, taxes, and depreciation) = $2,362,100 per year Required: 1. What is the contribution margin per unit? 2. What is the breakeven point, in units and in dollars? (Do not round intermediate calculations. Round up your answer to the next whole unit.) 3. What is the required level of sales (in units) if the company plans to increase facilities costs by 4% (to improve product quality and appearance) and has a desired profit of $220,000? (Ignore taxes in this question.) (Do not round intermediate calculations. Round up your answer to the next whole unit.) 4. If the company's income tax rate is 20%, what unit sales are necessary to achieve an after-tax profit of $190,000? (Do not round intermediate calculations. Round up your answer to the next whole unit.) 1. Contribution margin per unit 2. Breakeven point in units Breakeven point in dollars 3. Required level of sales in units 4. Units sales
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