Martin Footwear produces high quality computer bags. The accountant has prepared the following budget information for 2019:Fixed costs (total) Manufacturing$2,500,000Marketing and selling250,000Administrative750,000Total fixed costs$3,750,000 Other information Sales in dollars (total)$7,500,000Selling price per unit$150Variable manufacturing costs per unit$60Variable selling costs per unit$10Income tax rate40% Required What is the break-even point for 2019 in units and in sales dollars? ( ignore income taxes)What is the projected net income before tax for 2019?How many computer bags will need to be sold to achieve a target profit, after taxes, of $3,000,000?

Name: Martin Footwear produces high quality computer bags. The accountant h
Uploaded: 2022-05-24T13:26:03.000Z
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Description: Martin Footwear produces high quality computer bags. The accountant has prepared the following budget information for 2019:Fixed costs (total) Manufacturing$2,500,000Marketing and selling250,000Administrative750,000Total fixed costs$3,750,000 Other

Solution:- 1)Calculation of break-even point for 2019 in units and in sales dollars as follows:-…

Answered: Martin Footwear produces high quality…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Martin Footwear produces high quality computer bags. The accountant has prepared the following budget information for 2019:

Fixed costs (total)
Manufacturing	$2,500,000
Marketing and selling	250,000
Administrative	750,000
Total fixed costs	$3,750,000

Other information
Sales in dollars (total)	$7,500,000
Selling price per unit	$150
Variable manufacturing costs per unit	$60
Variable selling costs per unit	$10
Income tax rate	40%

Required

What is the break-even point for 2019 in units and in sales dollars? ( ignore income taxes)
What is the projected net income before tax for 2019?
How many computer bags will need to be sold to achieve a target profit, after taxes, of $3,000,000?

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