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