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Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect costs total $ 600 per unit. Fixed overhead costs total $ 700,000. The company pays sellers a commission of $ 400 per unit sold. Total fixed costs for the period add up to $ 200,000. Each watercraft sells for $ 5,000. The company taxes its earnings at 25%.  How many $ do you have to sell to make $ 180,000 profit before tax

Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect costs total $ 600 per unit. Fixed overhead costs total $ 700,000. The company pays sellers a commission of $ 400 per unit sold. Total fixed costs for the period add up to $ 200,000. Each watercraft sells for $ 5,000. The company taxes its earnings at 25%.  How many $ do you have to sell to make $ 180,000 profit before tax

FINANCIAL ACCOUNTING
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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Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect costs total $ 600 per unit. Fixed overhead costs total $ 700,000. The company pays sellers a commission of $ 400 per unit sold. Total fixed costs for the period add up to $ 200,000. Each watercraft sells for $ 5,000. The company taxes its earnings at 25%.

 How many $ do you have to sell to make $ 180,000 profit before tax

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Variable cost per unit = $2,000+$600+$400 = $3,000 per unit

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