An electrical product manufacturing company provides the following information related to plant revenue, cost, and capacity. The
Fantastic news! We've Found the answer you've been seeking!
Question:
An electrical product manufacturing company provides the following information related to plant revenue, cost, and capacity. The purpose is to find the answers to the questions that are of primary interest to the company. The data is as follows: Plant capacity 55,000 units Total fixed cost $ 550,000 Unit Price $ 40 Variable cost $ 18 Tax rate 15% Expected profit $ 85,000 Contribution margin $ 22
What is the total income that the company must have to cover the fixed, variable costs, expected profit and payment of taxes?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: