Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020: Net sales Direct materials Direct

image text in transcribedimage text in transcribed

YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020: Net sales Direct materials Direct labour Manufacturing overhead-variable Manufacturing overhead-fixed $606,000 193,400 59,100 20,900 30,200 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $20,300 18,300 9,300 10,900 Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars. (Round answers to o decimal places, e.g. 5,275.) Monthly break-even in units units Monthly break-even in dollars Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit. (Round answers to o decimal places, e.g. 15 or 15%.) Contribution margin ratio % Annual margin of safety ratio % $ Annual profit Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, e.g. 15.25%.) Percent increase in profit % Assume the price remains at $60 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b). (Round answer to 2 decimal places, e.g. 15.25%.) Percent increase in unit sales % Determine the sales required to earn an operating income of $391,800 after tax. YUX Corporation's income tax rate is 40%. Sales required to earn an operating income of $391,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

6th Edition

161853100X, 978-1618531001

More Books

Students also viewed these Accounting questions

Question

Is financial support available for travel to conferences?

Answered: 1 week ago