The ABC company has generated with its shareholders an investment of $500,000, they want to achieve a return of 30% before taxes for this period. Its variable costs are $30 per unit, the selling price is $80 per unit, and its fixed costs are $50,000. 

1. How much does the company have to sell to reach the profit projected by shareholders? 

• Sale price $170 per table
• Normal capacity 5,000 tables 

2. How many tables must the company sell to make a profit of $30,000 before taxes?

3. What is the fixed cost per table with a capacity of 75%? 

4. Suppose variable costs increased by 40%, what would the new breakeven point be in units? 

Answer rating: 100% (QA)

To answer the given questions lets break down the calculations step by step 1 How much does the comp... View the full answer