Question
You have been provided with the following information regarding the Pharma Manufacturing Company: (10 points) Sales Price $25 Variable manufacturing cost per unit 12 Variable
You have been provided with the following information regarding the Pharma Manufacturing Company: (10 points) Sales Price $25 Variable manufacturing cost per unit 12 Variable marketing cost per unit 3 Fixed manufacturing costs 180,000 Fixed administrative costs 40,000 This information is based on forecasted sales of 25,000 units. Required: (a) What are the expected operating profits for the upcoming year? (b) What is the break-even point in units? (c) What is the break-even point in dollars? (d) If $80,000 of operating profits is desired, how many units must be sold? (e) How much in sales dollars is required to generate operating profits of $75,000?
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