Accounting problem

K M R S Online Homework Question Week 4 - Cost Volume Profit Analysis An excerpt from the income statement of the Wellington Company follows: Income Statement - Year Ended 30 June Sales (400,000 units) $2,000,000 Operating Expenses Cost of Goods Sold $950,000 Selling & Administrative Expenses 450,000 $1,400,000 Net Income before tax $ 600,000 Less Tax (30%) $ 180,000 Net Profit after tax $ 420,000 Estimated Fixed Costs and Fixed Expenses during the year were $440,000. Manufacturing Capacity is 500,000 units per year. Required Unless otherwise stated use the original data in the question. (1) Calculate the Gross Profit Margin (Sales - COGS = Gross Profit Ratio) (2) Calculate the NET PROFIT Margin. (3 ) Calculate the Contribution Margin per unit (4) Calculate the Contribution Margin Ratio. (5 ) What is the breakeven point in Units for Wellington company? (6) Given an annual sales volume of 420,000 units, calculate the selling price per unit, necessary to achieve an after-tax profit equal to $420,000. (7) (Revert to original data except for sale price). At a selling price of $5.50, calculate the number of units that need to be sold to earn a net profit after tax equal to $500,000 (8) The SELLING PRICE required to earn a net profit after tax equal to 10% of sales revenue assuming 250,000 units are manufactured and sold. (9) The number of units that need to be sold at a selling price of $6.00 per unit to earn a net profit after tax equal to 15% of total costs