Bridges Corporation manufactures and sells two products: A and B. The projected information on these two products for the coming year is presented below: Product A 4,000 $12 8 Product B 1,000 $8 4 Sales in units Sales price per unit Variable costs per unit Total fixed costs for the company are projected at $10,000. Requirements: 1) Compute Bridges Corporation's projected break-even point in total units. 2) Compute the projected number of units Bridges Corporation must sell in order to earn a pre-tax profit of $50,000? 3) If Bridges Corporation has a tax rate of 40%, compute the projected number of units Bridges Corporation must sell in order to earn an after-tax profit of $60,000?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bridges Corporation manufactures and sells two products: A and B. The projected information on these two
products for the coming year is presented below:
Product A
4,000
$12
8
Product B
1,000
$8
4
Sales in units
Sales price per unit
Variable costs per unit
Total fixed costs for the company are projected at $10,000.
Requirements:
1) Compute Bridges Corporation's projected break-even point in total units.
2)
Compute the projected number of units Bridges Corporation must sell in order to earn a pre-tax profit of
$50,000?
3)
If Bridges Corporation has a tax rate of 40%, compute the projected number of units Bridges Corporation
must sell in order to earn an after-tax profit of $60,000?
Transcribed Image Text:Bridges Corporation manufactures and sells two products: A and B. The projected information on these two products for the coming year is presented below: Product A 4,000 $12 8 Product B 1,000 $8 4 Sales in units Sales price per unit Variable costs per unit Total fixed costs for the company are projected at $10,000. Requirements: 1) Compute Bridges Corporation's projected break-even point in total units. 2) Compute the projected number of units Bridges Corporation must sell in order to earn a pre-tax profit of $50,000? 3) If Bridges Corporation has a tax rate of 40%, compute the projected number of units Bridges Corporation must sell in order to earn an after-tax profit of $60,000?
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