3. JRT, Inc., predicts the following unit costs of making and selling its single product at a volume of 6,000 units per month (72,000 per year): Total Costs Manufacturing costs: Materials (variable) Labor (variable) Cost Per Unit $20 10 Variable overhead 8. Fixed overhead 6. Selling and administrative expenses: Variable 7 Fixed 10 Total: $61 JRT's income tax rate is 40%, and it sells its product for $75 per unit. Required: a. Determine JRT's monthly break-even point; b. The number of units JRT would have to sell to earn a monthly net income (after-tax) of $77,400; and c. The dollar amount of sales JRT would need to make to earn a monthly net income of $32,400.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3. JRT, Inc., predicts the following unit costs of making and selling its single product at a volume of 6,000
units per month (72,000 per year):
Total Costs
Manufacturing costs:
Materials (variable)
Labor (variable)
Cost Per Unit
$20
10
Variable overhead
8
Fixed overhead
6.
Selling and administrative expenses:
Variable
7
Fixed
10
Total:
$61
JRT's income tax rate is 40%, and it sells its product for $75 per unit.
Required:
а.
Determine JRT's monthly break-even point;
b. The number of units JRT would have to sell to earn a monthly net income (after-tax) of $77,400; and
с.
The dollar amount of sales JRT would need to make to earn a monthly net income of $32,400.
Transcribed Image Text:3. JRT, Inc., predicts the following unit costs of making and selling its single product at a volume of 6,000 units per month (72,000 per year): Total Costs Manufacturing costs: Materials (variable) Labor (variable) Cost Per Unit $20 10 Variable overhead 8 Fixed overhead 6. Selling and administrative expenses: Variable 7 Fixed 10 Total: $61 JRT's income tax rate is 40%, and it sells its product for $75 per unit. Required: а. Determine JRT's monthly break-even point; b. The number of units JRT would have to sell to earn a monthly net income (after-tax) of $77,400; and с. The dollar amount of sales JRT would need to make to earn a monthly net income of $32,400.
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