In 2015, X Company sold 61,500 units of its only product. The following is budgeted per-unit information for 2016: Selling price $34.41 Direct materials 5.41 Direct labor (all variable) 4.13 Variable overhead 4.70 Variable selling and administration 4.38 Fixed overhead and fixed selling and administration costs are expected to total $356,700. If X Company wants to earn $44,000 after taxes in 2016, and the tax rate is 31%, how many units must it sell?

In 2015, X Company sold 61,500 units of its only product. The following is budgeted per-unit information for 2016: Selling price $34.41 Direct materials 5.41 Direct labor (all variable) 4.13 Variable overhead 4.70 Variable selling and administration 4.38 Fixed overhead and fixed selling and administration costs are expected to total $356,700. If X Company wants to earn $44,000 after taxes in 2016, and the tax rate is 31%, how many units must it sell?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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