Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Required: a. Compute CPT's unit selling price that will yield a profit of $156,000, given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $170,100. c. Management believes that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)? Complete this question by entering your answers in the tabs below. Required A Required B Selling price Total Annual Costs (10,000 units) $ 116,000 54,000 120,000 94,000 $ 384,000 Required C Compute CPT's unit selling price that will yield a profit of $156,000, given sales of Note: Round your answer to 2 decimal places. per unit
Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Required: a. Compute CPT's unit selling price that will yield a profit of $156,000, given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $170,100. c. Management believes that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)? Complete this question by entering your answers in the tabs below. Required A Required B Selling price Total Annual Costs (10,000 units) $ 116,000 54,000 120,000 94,000 $ 384,000 Required C Compute CPT's unit selling price that will yield a profit of $156,000, given sales of Note: Round your answer to 2 decimal places. per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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