Question
Toronto enterprises ltd has estimated the following costs for producing and selling 15000 units of its product direct materials 75000 direct labour 90000 variable overhead
Toronto enterprises ltd has estimated the following costs for producing and selling 15000 units of its product direct materials 75000 direct labour 90000 variable overhead 45000 fixed overhead 30000 variable selling and admin 60000 fixed selling and admin 40000 The income tax rate is 40% A) given a selling price per unit of 38 calculate how much toronto enterprises would have to sell in order to break even? B) the selling price is not 43 per unit. How many units would they need to sell in order to produce a profit of 25000 before taxes? C) calculate what selling price toronto enterprises would have to charge in order to produce a profit of 30000 after taxes if 7500 were produced and sold. D) calculate what selling price toronto enterprise would have to charge in order to produce a before tax profit equal to 40% of sales if 10000 units were produced and sold, and additional fixed overhead costs of 2000 were expensed
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