Atlanta Corp. has supplied you with the following information: Variable cost per unit $450 Selling price per unit $600 Total fixed costs $1,800,000 Tax rate 50% Non-cash expenses $300,000 Required: Compute the break-even point in units Compute the break-even point in dollars Compute the target sales volume in units assuming a target net income before taxes of $300,000 Compute the target sales volume

Atlanta Corp. has supplied you with the following information: Variable cost per unit $450 Selling price per unit $600 Total fixed costs $1,800,000 Tax rate 50% Non-cash expenses $300,000 Required: Compute the break-even point in units Compute the break-even point in dollars Compute the target sales volume in units assuming a target net income before taxes of $300,000 Compute the target sales volume

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4.Atlanta Corp. has supplied you with the following information:

Variable cost per unit $450

Selling price per unit $600

Total fixed costs $1,800,000

Tax rate 50%

Non-cash expenses $300,000

Required:

Compute the break-even point in units
Compute the break-even point in dollars
Compute the target sales volume in units assuming a target net income before taxes of $300,000
Compute the target sales volume in dollars assuming a target net income after taxes of $300,000

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