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The XYZ Corporation sells only one product. The following is budgeted information for the product: Annual Production and Sales Capacity (Units) 60,000 Budgeted Selling Price

The XYZ Corporation sells only one product. The following is budgeted information for the product:

Annual Production and Sales Capacity (Units)

60,000

Budgeted Selling Price

$ 280

Per Unit

Variable Cost of Goods Sold

$ 90

Per Unit

Fixed Manufacturing Cost

$ 750,000

Variable Selling and Administrative Costs

$ 36

Per Unit

Fixed Selling and Administrative Costs

$ 625,000

The company's Corporate Tax Rate is 36%

1. How many units does the company need to sell to breakeven? (Round your answer up to the nearest whole unit) 2. How much revenue does the company need to generate to breakeven?

3. How many units does the company need to sell to earn an operating profit (before taxes) of 4. How much revenue does the company need to generate to earn net income (after taxes) of

$600,000 ? $900,000 ?

60,000 Units?

60,000 Units

(Take your answer to dollars and cents)

5. Assume the company is currently producing and selling 60,000 Units By what percentage will operating income change if sales increase by Be sure to provide figures to justify your answer

Round your percentage answer out 2 more decimal places (i.e. xx.xx%)

6. Assume the company is currently producing and selling 60,000 Units By what percentage will operating income change if sales decrease by Be sure to provide figures to justify your answer

Round your percentage answer out 2 more decimal places (i.e. xx.xx%)

6% from the

4% from the

please show work

one question multiple parts.

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