Required: a. What is the projected operating income? 199,000 b. What is the contribution margin per...

 

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Required: a. What is the projected operating income? 199,000 b. What is the contribution margin per unit? c. What is the break even point in units? What is break even in dollars? d. If $80,000 of net income is desired, how many units must be sold? (remember for this-you should calculate Operating income before you begin by taking N/(1-tax rate). All cvp calculations should be done using before tax values, so you have to change net income into operating profit) e. How much in sales dollars is required to generate an operating profit of $75,000? f. If the sales price increases by $2 per unit, what is the new breakeven point in dollars? g. If the fixed manufacturing costs decrease by $15,000, how much is the new breakeven point in units? h. If the variable marketing costs decrease by $1 per unit and the fixed administrative costs increase by $10,000, how many units are needed to breakeven? Sales price...$35 Variable Manufacturing cost per unit...$11 Variable Marketing Cost...$7 Fixed manufacturing costs...$180,000 Fixed administrative costs $46,000 Sales were forecasted at 25.000 units. Tax rate is 20%. Required: a. What is the projected operating income? 199,000 b. What is the contribution margin per unit? c. What is the break even point in units? What is break even in dollars? d. If $80,000 of net income is desired, how many units must be sold? (remember for this-you should calculate Operating income before you begin by taking N/(1-tax rate). All cvp calculations should be done using before tax values, so you have to change net income into operating profit) e. How much in sales dollars is required to generate an operating profit of $75,000? f. If the sales price increases by $2 per unit, what is the new breakeven point in dollars? g. If the fixed manufacturing costs decrease by $15,000, how much is the new breakeven point in units? h. If the variable marketing costs decrease by $1 per unit and the fixed administrative costs increase by $10,000, how many units are needed to breakeven? Sales price...$35 Variable Manufacturing cost per unit...$11 Variable Marketing Cost...$7 Fixed manufacturing costs...$180,000 Fixed administrative costs $46,000 Sales were forecasted at 25.000 units. Tax rate is 20%.

Answer rating: 100% (QA)

a Projected Operating Income Projected Operating Income Projected Sales Total Variable Costs Total Fixed Costs Projected Sales Sales price per unit x Number of units Projected Sales 35 x 25000 Project... View the full answer