Question

A
product sells for $170 per unit, and its variable costs per unit
are $100. The fixed costs are $540,000. If the firm wants to earn
$40,000 after tax income (assume a 15% tax rate), how many units
must be sold? After, prove the amount of units by plugging it back
in to find the $40,000 (pre and post 15% tax rate).

Answer #1

Gannon Company sells a single product for $15 per unit. Variable
costs are $10 per unit and fixed costs are $180,000 at an operating
level of 16,000 to 30,000 units.
a. What is Gannon Company's break-even point in units?answer
b. How many units must be sold to earn $20,000 before income
tax? answer
c. How many units must be sold to earn $30,000 after income tax,
assuming a 40% tax rate? Answer

ZBC, Inc. sells a single product for
$10 per unit. Variable costs are $5 per unit and fixed
costs are
$2,000.
A - Calculate the break-even point
in units.
B - How many units must be sold to
earn $10,000 before income tax?

Cost-Volume Profit Analysis
Hailstorm Company sells a single product for $22 per unit. Variable
costs are $14 per unit and fixed costs are $65,000 at an operating
level of 7,000 to 12,000 units.
a. What is Hailstorm Company's break-even point in units?
?units
b. How many units must be sold to earn $12,000 before income
tax?
?r units
c. How many units must be sold to earn $13,000 after income tax,
assuming a 35% tax rate?
? units

Dos Mfg Co. sells two products. Product A sells for $10 per unit
with variable costs of $6 per unit. Product B sells for $20 per
unit with variable costs of $12 per unit. Product A sells 75%,
while B sells 25% of the total units sold. Currently, with combined
sales of 20,000 units, the company made Total Revenue of $250,000,
after subtracting variable cost got Total Contribution Margin of
$100,000, and after subtracting Total Fixed Cost of $50,000, earned...

Conan Company has total fixed costs of
$112,000. Its product sells for $35 per unit and variable costs
amount to $25 per unit. Next year Conan Company wishes to earn a
pretax income that equals 10% of fixed costs.
How many units must be sold to achieve
this target income level?

Austin Automotive sells an auto accessory for $180 per unit. The
company’s variable cost per unit is $30 for direct material, $25
per unit for direct labor, and $17 per unit for overhead. Annual
fixed production overhead is $82,280, and fixed selling and
administrative overhead is $55,528. Assume a tax rate for the
company of 30 percent.
If Austin Automotive wants to earn an after-tax profit of $7.20
on each unit sold, how many units must the company sell?

In 2018, X Company sold 5,500 units of its only product for
$35.00 each. Unit costs were as follows: Variable manufacturing
$15.60 Fixed manufacturing 3.41 Variable selling 4.73 Fixed selling
3.49 Total 27.23 In 2019, the selling price, variable costs per
unit, and total fixed costs are not expected to change. Assuming a
tax rate of 40%, how many units must X Company sell in 2019 in
order to earn $40,000 after taxes?

Variable and Absorption Costing:
Chandler Company sells its product for $100 per unit. Variable
manufacturing costs per unit are $40, and fixed manufacturing costs
at the normal operating level of 12,000 units are $240,000.
Variable selling expenses are $16 per unit sold. Fixed
administrative expenses total $104,000. Chandler had no beginning
inventory in 2016. During 2016, the company produced 12,000 units
and sold 9,000. Would net income for Chandler Company in 2016 be
higher if calculated using variable costing or...

1. A company's product sells for $150 and has variable
costs of $60 associated with the product. What is its contribution
margin per unit?
a. $150
b. $90
c. $60
d. $40
2. A company's contribution margin per unit is $25. If
the company increases its activity level from 200 units to 350
units, how much will its total contribution margin
increase?
a. $1,250
b. $8,750
c. $3,750
d. $5,000
3. If a company has fixed costs of $6,000 per...

Sequoah Company sells its product for $58 and has variable costs
of $30 per unit. The total fixed costs are $40,000. What will be
the effect on the breakeven point in units if variable costs
increase by $6 due to an increase in the cost of direct
materials?

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