Question
YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020: Net sales $636,000 Selling expensesvariable
YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020:
Net sales | $636,000 | Selling expensesvariable | $18,100 | ||||
Direct materials | 212,500 | Selling expensesfixed | 20,300 | ||||
Direct labour | 57,900 | Administrative expensesvariable | 10,000 | ||||
Manufacturing overheadvariable | 19,500 | Administrative expensesfixed | 9,200 | ||||
Manufacturing overheadfixed | 33,140 |
Assuming fixed costs and net sales are spread evenly throughout the year, determine YUXs monthly break-even point in units and dollars. (Round answers to 0 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 0 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 Corporations income tax rate is 40%.
Sales required to earn an operating income of $391,800 | $ |
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