Question: Please can you help me solving this question: Oriole Company produces a single product. It sold 66,000 units last year with the following results: Sales


Please can you help me solving this question:



Oriole Company produces a single product. It sold 66,000 units last year with the following results: Sales $1,650,000 Variable costs $660,000 Fixed costs 264,000 924,000 Operating income before taxes 706,000 Income taxes {45%} 326,?00 Operating income $399,300 In an attempt to improve its product, Oriole is considering replacing a component part in its product that has a cost of $5 per unit with a new and better part costing $10 per unit during the coming year. A new machine would also be needed to increase plant capacity. The machine would cost $79,200, with a useful life of six years and no salvage value. The company uses straight-line depreciation on all plant assets. What was Oriole's break-even point in units last year? Break-even point units How many units of product would Oriole have had to sell in the past year to earn $217,300 in operating income after taxes? Sales to be made ' units If it holds the sales price constant and makes the suggested changes, how many units of product must the company sell in the coming year to break eve n? Break-even ' units If it holds the sales price constant and makes the suggested changes, how many units of product will Oriole have to sell to make the same operating income before taxes as last year? Required sales ' units If Oriole wishes to maintain the same contribution margin ratio.what selling price per unit of product mu st it charge next year to cover the increased materials costs? {ROWHHSWEJ' to 2 decimal places. 9.3. 15.25.) Selling price per unit 33
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