Question: Hi, can you please explain how to do this? I'm getting confused with all the numbers, thanks Ronald Enterprises Ltd. has estimated the following costs

Hi, can you please explain how to do this? I'm getting confused with all the numbers, thanksHi, can you please explain how to do this? I'm getting confused

Ronald Enterprises Ltd. has estimated the following costs for producing and selling 15,600 units of its product: Direct materials $93,600 Direct labour 109,200 31,200 Variable overhead Fixed overhead 30,000 Variable selling and administrative expenses 78,000 Fixed selling and administrative expenses 37,500 Ronald Enterprises' income tax rate is 40 % . Given that the selling price one unit is $40, calculate how many units Ronald Enterprises would have to sell in order to break even. Break-even units LINK TO TEXT Assume the selling price is $45 per unit. Calculate how many units Ronald Enterprises would have to sell in order to produce a profit of $25,100 before taxes. Target units units LINK TO TEXT Calculate what price Ronald Enterprises would have to charge in order to produce a profit of $27,000 after taxes if 7,500 units were produced and sold Ronald Enterprises should charge per unit LINK TO TEXT Calculate what price Ronald Enterprises would have to charge in order to produce a before-tax profit equal to 30 % of sales if 8,200 units were produced and sold. (Round answer to 2 decimal places, e.g. 15.25.) Ronald Enterprises should charge per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!