Question

Rattle Company produces a single product. The product is sold for $12.00 per unit and has...

Rattle Company produces a single product. The product is sold for $12.00 per unit and has total variable costs of $4.00 per unit. Total fixed costs are $4,800,000 and the company faces a tax rate of 25%.

What unit sales are required for Rattle Company to earn an after tax profit of $900,000?

500,000

600,000

750,000

925,000

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Part A. Pigwidgeon Company charges a selling price of $30 per unit for its single product,...
Part A. Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $280,000. What unit sales volume is necessary to earn a net income before tax of $40,000? Part B. Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $280,000. What sales volume is necessary to earn...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company’s annual fixed costs are $629,000. The sales manager predicts that annual sales of the company’s product will soon reach 39,900 units and its price will increase to $199 per unit. According to the production manager, variable costs are expected to increase to $139 per unit, but fixed costs will remain at $629,000. The income tax rate is...
ABC Company produces a product with a variable cost of $3.00 per unit and a selling...
ABC Company produces a product with a variable cost of $3.00 per unit and a selling price of $5.00 per unit. The company's fixed costs are $30,000. If ABC Company wants to earn a profit of $20,000, how much sales revenue must the company earn?
. DCK (Pty) Ltd produces a single product. You were given the following information regarding the...
. DCK (Pty) Ltd produces a single product. You were given the following information regarding the product: Pula (per unit) Selling price 60.00 Variable production costs 12.00 Variable selling cost 4.00 Fixed production cost 40.00 Fixed selling cost 8.00 Budgeted production is 10,000 units. Required: Determine the following: a. Breakeven point in units b. Number of units to be sold if the company wants to achieve a profit of P110,000. c. Breakeven point in Pula, if the variable production cost...
Glade Company produces a single product. The costs of producing and selling a single unit of...
Glade Company produces a single product. The costs of producing and selling a single unit of this product at the company's current activity level of 8,000 units per month are: Direct Materials ……………………………………………........................ $2.50 Direct labor ……………………………………………………...………… $3.00 Variable manufacturing overhead ……………………………..………….. .$0.50 Fixed Manufacturing Overhead …………………………...……………….. $4.25 Variable selling and administrative expenses………………………………. $1.50 Fixed selling and administrative expenses………………………………….. $2.00 The normal selling price is $15 per unit. The company's capacity is 10,000 units per month. An order has been...
Delta Company produces a single product. The cost of producing and selling a single unit of...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 96,000 units per year is:   Direct materials $ 2.10   Direct labor $ 4.00   Variable manufacturing overhead $ .70   Fixed manufacturing overhead $ 4.65   Variable selling and administrative expenses $ 1.70   Fixed selling and administrative expenses $ 3.00 The normal selling price is $25 per unit. The company’s capacity is 122,400 units per year. An order...
Gannon Company sells a single product for $15 per unit. Variable costs are $10 per unit...
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
Delta Company produces a single product. The cost of producing and selling a single unit of...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 106,800 units per year is: Direct materials $ 2.40 Direct labor $ 4.00 Variable manufacturing overhead $ 1.00 Fixed manufacturing overhead $ 4.05 Variable selling and administrative expenses $ 1.90 Fixed selling and administrative expenses $ 3.00 The normal selling price is $22.00 per unit. The company’s capacity is 121,200 units per year. An order...
Delta Company produces a single product. The cost of producing and selling a single unit of...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 103,200 units per year is: Direct materials $ 1.70 Direct labor $ 4.00 Variable manufacturing overhead $ 0.80 Fixed manufacturing overhead $ 3.45 Variable selling and administrative expenses $ 1.70 Fixed selling and administrative expenses $ 3.00 The normal selling price is $20.00 per unit. The company’s capacity is 115,200 units per year. An order...
Delta Company produces a single product. The cost of producing and selling a single unit of...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 88,800 units per year is: Direct materials $ 2.20 Direct labor $ 4.00 Variable manufacturing overhead $ 0.70 Fixed manufacturing overhead $ 3.85 Variable selling and administrative expenses $ 1.10 Fixed selling and administrative expenses $ 3.00 The normal selling price is $19.00 per unit. The company’s capacity is 109,200 units per year. An order...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT