PR 3-8 (Algo) (LO 3.5) Pawxie Vibe company has sales unit data and the following...Pawxie Vibe company has sales of 21,400 units and the following per-unit financial information:RevenueVariable CostsContribution MarginFixed CostsOperating Income$ 6.20$ 1.55$ 4.65$ 3.10$ 1.55Questiona. Assuming a tax rate of 30%, what is current net income? Note: Round your answer to 2 decimals.b. Pawxie Vibe has a target operating income of $44,795. How many units must it sell to reach that target?Note: Round your answer to the nearest whole unit number.c. Pawxie Vibe predicts that it can cut fixed advertising expenses by $10,700, resulting in a reduction in unitsales of 10%. What will operating income be if Pawxie Vibe cuts $10,700 of advertising expenses? Note:Round your answer to 2 decimals.Answer

Contribution Margin is calculated with the help of following formula Contribution Margin = Sales -…

Answered: PR 3-8 (Algo) (LO 3.5) Pawxie Vibe…

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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H. K 35 36 TABLE A TABLE B Annual Fixed Costs (TL) Marketing, Selling and Distribution Expenses Low Option High Option 725,000.00 37 Annually Estimated Annually Estimated Sales Administration Expenses 1,250,000.00 38 Sales 30,000.00 1,285.00 15,000.00 1,443.00 39 Price (TL) $4 Price (TL) 2$ R&D 379,000.00 40 Direct Fixed Costs 4,750,000.00 41 Materials Number Required Unit Costs (TL) Materials Number Required rqaaS 42 Stove 1 172.25 Stove 1 202.25 43 Oven 1 242.15 Oven 1 252.15 TAX RATE 44 Display Screen 45 Driver 1 19.25 Display Screen 2 36.24 2 18.10 Driver 2 18.10 20% 46 Electronic Card 1 11.97 Electronic Card Bluetooth 1 11.97 47 Bluetooth 1 11.16 1 11.16 48 Fan 2 7.99 Fan 8 7.99 49 Light Bulb 1 Light Bulb Smart Connectivity 4.99 5.99 50 39.99 51 Direct Labor Costs 85.32 52 Packaging Cost Per 49.27 Direct Labor Costs 10% Increase from LowOption's Direct Labor Cost Increase from LowOption's Packaging Cost 53 Packaging Cost Per Unit 4% 54 Instructions Answers

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