Question
XYZ Ltd is a manufacturing company that produces a single product, PQR. The company has budgeted the following costs and production volume for the upcoming
XYZ Ltd is a manufacturing company that produces a single product, PQR. The company has budgeted the following costs and production volume for the upcoming year:
Direct materials cost per unit: $10
Direct labor cost per unit: $5
Variable manufacturing overhead cost per unit: $3
Fixed manufacturing overhead cost per year: $240,000
Expected production volume: 50,000 units
The company expects to sell 45,000 units at a price of $35 per unit. The company's income tax rate is 30%. Calculate the following:
a) What is the total manufacturing cost per unit of PQR?
b) What is the total cost per unit of PQR?
c) What is the company's total revenue?
d) What is the company's gross profit?
e) What is the company's net profit after taxes?
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