Question
Units sold 10,000 Selling price $200 per unit Variable costs $110 per unit Total fixed costs $200,000 Tax rate 40% 1. How many units have
Units sold 10,000
Selling price $200 per unit
Variable costs $110 per unit
Total fixed costs $200,000
Tax rate 40%
1. How many units have to be sold in order to earn an aftertax net income of $600,000?
a. 11,111
b. 12,222
c. 13,333
d. 14,444
2. First: Prepare a contribution margin income statement based on the 10,000 units sold. Second: Using one of the short-cut tricks that you learned, assuming sales increased by 30 percent, what would the new net income be?
a. | $870,000 |
b. | $970,000 |
c. | $1,070,000 |
d. | $1,170,000 |
3. First: Go back to the original data and use the contribution margin income statement based on the 10,000 units sold that you just prepared for Question #10. Second: Using the other short-cut trick that you learned, assuming the sales price increased by 20 percent, what would the new net income be?
a. | $1,100,000 |
b. | $1,200,000 |
c. | $1,300,000 |
d. $1,140,000
4. First: Go back to the original data and use the contribution margin income statement based on the 10,000 units sold that you prepared for Question #10. Suppose variable costs increase by 30% and fixed costs decrease 40%. What is the new breakeven point in units?
A. 1905 units
B. 2005 units
C. 2105 units
D. 2205 units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started