Question
Zachary Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $45. Variable costs Manufacturing Selling Fixed
Zachary Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $45. Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 7 per unit $158,000 per year $ 98,200 per year Required a. Use the per-unit contribution n. gin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $172,200. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,600 units, how much could it pay in salaries for salespeople and still have a profit of $172,200? (Hint: Use the equation method.) a. Break-even point in units Break-even point in dollars b. Required sales in units Required sales in dollars c. Fixed cost of salaries 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 E
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started