Jeffrey Company produces and sells socks. Variable costs are $3 per pair, and fixed costs for the

Question:

Jeffrey Company produces and sells socks. Variable costs are $3 per pair, and fixed costs for the year total $75,000. The selling price is $5 per pair.

Variable costs $ 3
Fixed costs $ 75,000
Selling Price $ 5


Required

Calculate the following:

1. The breakeven point in units.

2. The breakeven point in sales dollars.

3. The units required to make a before-tax profit of $10,000.

4. The sales in dollars required to make a before-tax profit of $8,000.

5. The sales units and sales dollars required to make an after-tax profit of $12,000 given a tax rate of 40 percent.


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

Question Posted: