A firm has the following income statement for a month. 3,000 units at $80/unit Sales: Less:...
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A firm has the following income statement for a month. 3,000 units at $80/unit Sales: Less: Cost of Goods Sold. Variable Production Cost Fixed Production Cost Gross Margin Selling and Administrative Expenses Variable Selling Cost Fixed Selling Expenses $11,700 Net Income Before Taxes $240,000 180,000 19,800 40,200 21,000 7,500 1. Find the firm's breakeven output. 2. If it wishes to have a monthly net income before taxes of $18,000 and its cost structure remains as above, what quantity of output will it need to sell? 3. If its variable production costs increase by $4 per unit, what will be its breakeven output? 4. After the increase in costs in 3, what output will it need to sell if it wishes to have the $18,000 monthly pretax profit stated earlier? A firm has the following income statement for a month. 3,000 units at $80/unit Sales: Less: Cost of Goods Sold. Variable Production Cost Fixed Production Cost Gross Margin Selling and Administrative Expenses Variable Selling Cost Fixed Selling Expenses $11,700 Net Income Before Taxes $240,000 180,000 19,800 40,200 21,000 7,500 1. Find the firm's breakeven output. 2. If it wishes to have a monthly net income before taxes of $18,000 and its cost structure remains as above, what quantity of output will it need to sell? 3. If its variable production costs increase by $4 per unit, what will be its breakeven output? 4. After the increase in costs in 3, what output will it need to sell if it wishes to have the $18,000 monthly pretax profit stated earlier?
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Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
Posted Date:
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