Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company: Sales price = $5,656 Direct materials cost (including purchased
The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company: Sales price = $5,656 Direct materials cost (including purchased components) = $907 Direct labor cost = $235 Facilities costs (for a highly automated plant; mainly includes rent, insurance, taxes, and depreciation) = $2,372,200 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 before-tax profit (TTB) of $280,000? (Do not round intermediate calculations. Round up your answer to the next whole unit.) 4. If the company's income tax rate is 25%, what unit sales are necessary to achieve an after-tax profit (TTA) of $230,000? (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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started