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Wildhorse Company has developed a new product that will be marketed for the first time next year. The product will have variable costs of $37

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Wildhorse Company has developed a new product that will be marketed for the first time next year. The product will have variable costs of $37 per unit. Although the marketing department estimates that 67,550 units could be sold at $57 per unit, Wildhorse's management has allocated only enough manufacturing capacity to produce a maximum of 48,250 units a year. The fixed costs associated with the new product are budgeted at $868,500 for the year. Wildhorse is subject to a 40% tax rate. (a1) Your answer is correct Calculate contribution margin per unit. 20 Contribution margin per unit Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 1 of 15 used (a2) Your answer is correct. How many units of the new product must Wildhorse sell in the next fiscal year to break even? (Use the rounded contribution margin per unit calculated in the previous part.) 43425 units What is the maximum net income that Wildhorse can earn from sales of the new product in the next fiscal year? (Use the rounded contribution margin per unit calculated in the previous part.) 57900 Maximum net income Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 3 of 15 used (c) Wildhorse's managers have stipulated that they will not authorize production beyond the next fiscal year unless the after-tax profit from the new product is at least $144,750. How many units of the new product must be sold in the next fiscal year to ensure continued production? (Use the rounded contribution margin per unit calculated in the previous part. Round answer to o decimal places, e.g. 5,275.) units

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