Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) О a. 33 О Б. 40 51 O d. None of the given answers О е. 72

Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) О a. 33 О Б. 40 51 O d. None of the given answers О е. 72

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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