4. A firm produces and sells a product with a contribution margin of $32 per unit. The firm is presently selling 90,000 units and earning $240,000 in after-tax income. Taxes are $80,000 at a 25% tax rate. If the firm desires to increase its after-tax income to $300,000, how many more units must it sell?   Required: a. Calculate the contribution margin per unit. b. Calculate the break-even point in units.

Q: If each sales rep earns a salary of €60,000 per year, whatsales are necessary to break even on the…

A: Break-Even Point: It refers to a point of production at which there is no profit no loss.

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A: Let, no. of units sold = X So, Net Profit = (Sales price - variable cost)*No. of units sold - Fixed…

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A: TARGET SALESTarget Sales are the Estimated Sales required to achieve the target net income. Target…

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A: Break even point production level is where there is no profit and no loss for Company.

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A: Breakeven Point is the point at which the fixed cost equals the contribution margin. The Point at…

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A: Expected Monetary Value (EMV) is a  technique we use to evaluate business alternatives when the…

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A: The margin of safety provides a measure of the financial resilience of a business, as it indicates…

Q: 2. A firm has the capacity to produce 924,230 units of a product each year. At present, it is…

A: The price for each unit is $1.45.Explanation:To find the price for each unit, we need to use the…

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A: At break even point, Selling price per unit = Variable costs per unit + (Total fixed costs / No. of…

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A: Contribution Margin is  Sales minus Variable Cost and Contribution Margin Ratio is Contribution…

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A: Payoff refers to an amount that is paid in actuality for satisfying the terms of the mortgage loan…

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A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

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A: The formula to compute break-even quantity:

Q: What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each…

A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…

Q: Example: Your company wants to earn $7,000 in after-tax profit selling Frog caps outside the stadium…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: The following annual information is for Dexter Corporation:   Product A Revenue per unit: $20.00…

A: Formula: Unit contribution margin = Selling price - Variable cost per unit

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A: Break break-even point is the point where there is no profit or loss. At this point the contribution…

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.