CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Direct material Per Unit Total $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead Fixed selling and administrative $200,000 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675 b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). 0 * garden sheds c. How much revenue is generated from selling units calculated in part (b)? $ 0 × garden sheds

CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Direct material Per Unit Total $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead Fixed selling and administrative $200,000 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675 b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). 0 * garden sheds c. How much revenue is generated from selling units calculated in part (b)? $ 0 × garden sheds

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: W&W Tax Service offers tax and consulting services to individuals and small businesses. Data for…

A: The term "break-even point" in accounting refers to the stage or level of activity when the volume…

Q: EA5. Maple Enterprises sells a single product with a selling price of $75 and variable costs per…

A: The BEP majorly in cost accounting indicates the threshold at which total costs incurred and…

Q: A company invests $16,000 to produce a product that will sell for $45.60. Each unit costs $8.35 to…

A: Investment cost = $ 16,000 Selling price = $ 45.60 Cost per unit = $ 8.35 Profit per unit = Selling…

Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…

A: Break Even Point = Fixed Cost/ ( Sales price - Variable Cost )

Q: Gena Manufacturing Company has a fixed cost of $239,000 for the production of tubes. Estimated sales…

A: Contribution margin is the amount of difference between the sales amount and the variable costs. It…

Q: Betty, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended…

A: After tax profit refers to the remaining earnings of a company or individual after accounting for…

Q: EA5. Maple Enterprises sells a single product with a selling price of $75 and variable costs per…

A: Hello I am only answering D, E, and F part of the question as you have already mentioned to answer…

Q: A firm sells a single product for $8. Its variable cost per unit is $5 and fixed costs are $90.…

A: Contribution Margin Per Unit is calculated as the total selling price per unit minus the total…

Q: Acme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed…

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

Q: Planet of the Grapes, Inc. makes a single product that it sells for $40 each. Variable costs are $15…

A: In order to calculate desired sales for a required level of profit: Desired sales = (Fixed cost +…

Q: Cohen Company produces and sells socks. Variable cost is $10.80 per pair, and fixed costs for the…

A: >Break even level is that level of sale, which when reached, provides neither any profit or…

Q: CVP Drill #10 Shultz Company sells slides for $400 each. If the company's fixed costs total…

A: Break- even point is the point where there is no profit or loss. If we sell anything beyond this…

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Hiawatha, Inc. has an agreement with a customer to produce 10 units of a product to sell for $1,200…

A: Variable costs per unit = total costs per unit x 50% = $850 x 50% = $425 Fixed costs per unit =…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Profit = Revenues - Expenses.

Q: A yogurt company sells its product for S4 per cup. The variable costs to produce each cup add up to…

A: The Unit Contribution Margin is a key financial metric that represents the amount of money each unit…

Q: Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect…

A: 6) Sales - Variable cost = Contribution Here, selling price = $5000 per unit Variable cost per unit…

Q: A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If…

A: Given, Selling price = $9 per unit Variable cost = $4 per unit Contribution margin per unit =…

Q: 23. FGM Limited produces nail brushes for domestic use. It sells 80,000 in a year. Raw materials…

A: Total cost of the product includes two type of costs. These are fixed costs and variable costs.…

Q: United Snack Company sells 40-pound bags of peanuts to university dormitories for $42 a bag. The…

A: The break-even point is the point where the firm earns no profit no loss. At this point, the firm…

Q: 4.. Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs…

A: Lets understand the basics. There are two costing methods are generally followed by the entities…

Q: Cruse Cleaning offers residential and small office cleaning services. An average cleaning service…

A: Break even sale is a ponit of sale at which business earnd no profit and no loss . It means break…

Q: 9-27 CVP Analysis with Income Taxes Cohen Company produces and sells socks. Variable cost is $6 per…

A: As per our policy we can answer maximum three sub-parts. To get solution of remaining sub-parts…

Q: Cruse Cleaning offers residential and small office cleaning services. An average cleaning service…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: A company sells 100-pound bags of a product for $25 a bag. The fixed costs of this operation are…

A: EBIT stands for earning before Interest and Tax. EBIT is earnings after deduction of all operating…

Q: WRT Disk company sells its disks for $107 per unit. Total fixed costs are $197,000 and variable…

A: Contribution margin represents the difference between sales revenue and variable costs, showing how…

Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

CVP; taxes
Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows:
Per
Unit Total
$800
Direct material
Direct labor
Variable production overhead
90
60
Variable selling and administrative cost
50
Fixed production overhead
Fixed selling and administrative
$200,000
60,000
a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675
b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?
Note: Do not round until your final answer.
Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units).
0
* garden sheds
c. How much revenue is generated from selling units calculated in part (b)? $ 0
garden sheds

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of units to produce desired profit

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Nature’s Own makes three types of wood flooring: Oak, Hickory, and Cherry. The company’s tax rate is 40 percent. The following costs are expected for the year: (See attached) Per-square-yard expected selling prices are as follows: Oak, $32.80; Hickory, $16.00; and Cherry, $50.00. The expected sales mix is as follows: Oak Hickory Cherry Square yards 10,800 86,400 7,200 d. If the company wants to earn an after-tax profit of $816,000, determine the revenue needed using the contribution margin percentage approach. $______ e. If the company achieves the revenue determined in (d), what is the (1) breakeven point in dollars, and the margin of safety (2) in dollars and (3) as a percentage Breakeven in dollars: $______ Margin of safety in dollars: $______ Margin of safety percentage: $______
1
Q5. Sunn company manufactures a single product that sells for $220 per unit and whose variable costs are $176 per unit. The company's annual fixed costs are $664,400. Management targets an annual income of $1,100,000.
Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $1,120,000. What unit sales volume is necessary to earn a net income before tax of $40,000? Select one: O a. 73,500 b. 72,500 c. 70,000 d. 77,876 e. None of these options are correct.
Example: Your company wants to earn $7,000 in after-tax profit selling Frog caps outside the stadium this season. Fixed costs are $6,000 and CMU = $2 per cap. The income tax rate is 30%. 2. How many units do you need to sell to reach the pre-tax profit?
Fis-Kla CVBA sells a single product in Georgia for $792. Variable costs are 59% of the selling price, and the company has fixed costs that amount to $305,112. Current sales total 18,426 units. Each unit that Fis-Kla sells will increase profit by, to the nearest dollar: Select one: A. $451 B. $325 C. $467 D. $308 E. $10
Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600
Clank Bicycles is a bicycle retailer that sells road bikes and mountain bikes. Mountain bikes accounts for 60% of the store’s total sales volume. The selling price and variable cost per unit are as follows: Road bike Mountain bike Selling price 4,700 3,400 Product cost 3,080 2,600 Sales commission 60 40 Annual fixed costs are $113,400. Ignore tax effects and assume a constant sales mix. Required: Calculate the break-even point in units and dollars. Calculate how many bicycles of each type needed to be sold to earn a target net profit of $340,200?Hint: Same formula as a single product, but divided by ‘weighted average unit contribution margin’ instead of ‘unit contribution margin’.
Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.) Compute the number of units and sales revenue needed to achieve a 12% net profit margin. (Assume a 40% income tax rate.)
Munabhai
CVP; multiproduct Mel's Accessories sells wallets and money clips. Historically, the firm's sales have averaged three wallets for every money clip. Each wallet has an $8 contribution margin, and each money clip has a $6 contribution margin. Mel's incurs fixed cost in the amount of $180,000. The selling prices of wallets and money clips, respectively, are $30 and $15. The corporate-wide tax rate is 40 percent. a. How much revenue is needed to break even? $ 756,000 x How many wallets and money clips does this represent? 648,000 x wallets 108,000 x money clips b. How much revenue is needed to earn a pre-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. $ 0 c. How much revenue is needed to earn an after-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your…
Q4.