Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
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