Accurate answer A company desires a net income of$950,000 when it has $2,800,000 offixed costs and variable costs of 65% ofsales.What are the required sales?a. $3,500,624.27b. $8,200,570.89c. $10,714,285.71d. $12,000,057.54

Explanation of Required Sales:The Required Sales refer to the total revenue a company must generate…

Answered: A company desires a net income of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
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A product sells for $400 per unit and its variable costs per unit are $260. The company’s fixed costs are $840,000. If the company desires $70,000 pretax income, what is the required dollar sales? a. $2,400,000 c. $2,600,000 e. $1,400,000 b. $200,000 d. $2,275,000
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If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses are $260,000, what are the breakeven sales in dollars? A. $433,333 B. $650,000 OC. $185,714 ⒸD. $156,000
Assume a company produces one product that sells for $55, has a variable cost perunit of $35, and has fixed costs of $100,000. How many units must the company sellto earn a target profit of $50,000?a. 7,500 unitsb. 10,000 unitsc. 12,500 unitsd. 15,000 units
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18. Assume the company's monthly target profit is $17,000. The dollar sales to attain that target profit is closest to:A. $387,392B. $635,069C. $671,925D. $993,313
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A company desires a net income of $950,000 when it has $2,800,000 of fixed costs and variable costs of 65% of sales. What are the required sales? a. $3,500,624.27 b. $8,200,570.89 c. $10,714,285.71 d. $12,000,057.54