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The BC Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows: Variable Costs per card: Fixed
The BC Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows: Variable Costs per card: Fixed Costs per Month: Manufacturing Direct materials $0.30 Direct labor 0.25 Factory overhead 0.25 0.80 Factory overhead $4,000 Selling and admin 0.15 Selling and admin. 3,000 Total $0.95 Total $7,000 BC Supply produced and sold 10,000 cards during October. There were no beginning or ending inventories. Required: (a) Prepare a contribution income statement for October. (b) Determine BC Supply's monthly break-even point in units. (c) Determine the effect on the monthly profit of a 1.700 unit increase in monthly sales. (d) If BC Supply is subject to an income tax of 34 percent, determine the dollar sales volume required to earn a monthly after-tax profit of $22,000
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