Question
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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