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?
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?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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Question
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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