Question

Lin Corporation has a single product whose selling price is $120 and whose variable expense is...

Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000.

  1. If Lin has a target profit of $10,000 per month, what are the monthly sales revenues needed to achieve this target?
  2. Suppose Lin faces a tax rate of 40% and wants to achieve the target profit of $10,000 after taxes. What are the monthly sales revenues needed to achieve this target? Round your answer to the nearest dollar.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Lin Corporation has a single product whose selling price is $120 per unit and whose variable...
Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000. Required: 1. Calculate the unit sales needed to attain a target profit of $10,000. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $15,000. (Round your intermediate calculations to the nearest whole number.)
Lin Corporation has a single product whose selling price is $140 and whose variable expense is...
Lin Corporation has a single product whose selling price is $140 and whose variable expense is $70 per unit. The company’s monthly fixed expense is $31,600. 1. Using the equation method, determine for the unit sales that are required to earn a target profit of $8,300. 2. Using the formula method, determine for the unit sales that are required to earn a target profit of $10,000. (Round your answer to the nearest whole number.)
Lin Corporation has a single product whose selling price is $130 per unit and whose variable...
Lin Corporation has a single product whose selling price is $130 per unit and whose variable expense is $65 per unit. The company’s monthly fixed expense is $32,150. Required: 1. Calculate the unit sales needed to attain a target profit of $2,300. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,900. (Round your intermediate calculations to the nearest whole number.)
Lin Corporation has a single product whose selling price is $136 per unit and whose variable...
Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company’s monthly fixed expense is $32,000. Required: 1. Calculate the unit sales needed to attain a target profit of $7,100. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,200. (Round your intermediate calculations to the nearest whole number.)
Brihon Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Brihon Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit. b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit.
Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $14,000. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Mauro Products distributes a single product, a woven basket whose selling price is $20 and whose...
Mauro Products distributes a single product, a woven basket whose selling price is $20 and whose variable expense is $16.2 per unit. The company’s monthly fixed expense is $9,880. Required: 1. Solve for the company’s break-even point in unit sales using the equation method. (Do not round your intermediate calculations.)       2. Solve for the company’s break-even point in dollar sales using the equation method and the CM ratio. (Do not round intermediate calculations. Round "CM ratio percent" to nearest...
Mauro Products distributes a single product, a woven basket whose selling price is $18 and whose...
Mauro Products distributes a single product, a woven basket whose selling price is $18 and whose variable expense is $13.14 per unit. The company’s monthly fixed expense is $6,318. Required: 1. Solve for the company’s break-even point in unit sales using the equation method. (Do not round your intermediate calculations.) 2. Solve for the company’s break-even point in dollar sales using the equation method and the CM ratio. (Do not round intermediate calculations. Round "CM ratio percent" to nearest whole...
Mauro Products distributes a single product, a woven basket whose selling price is $24 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $24 per unit and whose variable expense is $19 per unit. The company’s monthly fixed expense is $10,000. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Grayson Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Grayson Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $230.00 Variable cost per unit $92.00 Fixed cost per month $621,000 Required: a. Assume the company's monthly target profit is $69,000. Determine the unit sales to attain that target profit. b. Assume the company's monthly target profit is $41,400. Determine the dollar sales to attain that target profit. Per Unit Percent of Sales Selling price per unit $230.00 100% Variable cost per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT