Valley Hardware sells three types of power saws - Basic, Deluxe, and Supreme models. The budget...

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Valley Hardware sells three types of power saws - Basic, Deluxe, and Supreme models. The budget for the current year for the 3 saws is shown below: Valley Hardware Budget Unit Sales Units selling price Variable manufacturing cost per unit Variable selling cost per unit Basic Saw Deluxe Saw Supreme Saw 5,000 $84 $39 $15 10,000 $108 $36 $12 15,000 $144 $75 $19 For the current year, Valley's fixed manufacturing overhead is budgeted at $1,000,000, and the company's fixed selling and administrative expenses are budgeted to be $200,000. Valley has an income tax rate of 30%. 1. Calculate Valley's budgeted NET INCOME for the year (10 marks) 2. Assuming that the sales mix remains as budgeted, determine how many units of each product must be sold to break even (6 marks). Valley Hardware sells three types of power saws - Basic, Deluxe, and Supreme models. The budget for the current year for the 3 saws is shown below: Valley Hardware Budget Unit Sales Units selling price Variable manufacturing cost per unit Variable selling cost per unit Basic Saw Deluxe Saw Supreme Saw 5,000 $84 $39 $15 10,000 $108 $36 $12 15,000 $144 $75 $19 For the current year, Valley's fixed manufacturing overhead is budgeted at $1,000,000, and the company's fixed selling and administrative expenses are budgeted to be $200,000. Valley has an income tax rate of 30%. 1. Calculate Valley's budgeted NET INCOME for the year (10 marks) 2. Assuming that the sales mix remains as budgeted, determine how many units of each product must be sold to break even (6 marks). Valley Hardware sells three types of power saws - Basic, Deluxe, and Supreme models. The budget for the current year for the 3 saws is shown below: Valley Hardware Budget Unit Sales Units selling price Variable manufacturing cost per unit Variable selling cost per unit Basic Saw Deluxe Saw Supreme Saw 5,000 $84 $39 $15 10,000 $108 $36 $12 15,000 $144 $75 $19 For the current year, Valley's fixed manufacturing overhead is budgeted at $1,000,000, and the company's fixed selling and administrative expenses are budgeted to be $200,000. Valley has an income tax rate of 30%. 1. Calculate Valley's budgeted NET INCOME for the year (10 marks) 2. Assuming that the sales mix remains as budgeted, determine how many units of each product must be sold to break even (6 marks). Valley Hardware sells three types of power saws - Basic, Deluxe, and Supreme models. The budget for the current year for the 3 saws is shown below: Valley Hardware Budget Unit Sales Units selling price Variable manufacturing cost per unit Variable selling cost per unit Basic Saw Deluxe Saw Supreme Saw 5,000 $84 $39 $15 10,000 $108 $36 $12 15,000 $144 $75 $19 For the current year, Valley's fixed manufacturing overhead is budgeted at $1,000,000, and the company's fixed selling and administrative expenses are budgeted to be $200,000. Valley has an income tax rate of 30%. 1. Calculate Valley's budgeted NET INCOME for the year (10 marks) 2. Assuming that the sales mix remains as budgeted, determine how many units of each product must be sold to break even (6 marks).

Answer rating: 100% (QA)

Statement showing Net Income Particulars Amount Sales 3660000 Less Variable Cost 2160000 Contributio... View the full answer