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You have been provided with the following information regarding the Closure Manufacturing Company: Sales Price $50 Variable manufacturing costs per unit $24 Fixed manufacturing costs

You have been provided with the following information regarding the Closure Manufacturing Company:

Sales Price

$50

Variable manufacturing costs per unit

$24

Fixed manufacturing costs per unit

$12

Variable marketing costs per unit

$ 6

Fixed administrative costs per unit

$ 3

This information is based on forecasted sales of 33,000 units.

I wanted to know if these answers are correct?

  1. What is the expected operating profit for the upcoming year? 165,000
  2. What is the breakeven point in dollars? 1,237,500
  3. How much in sales dollars is required to generate an operating profit of $275,000? 1,925,000

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