$30.00 Selling price per unit Variable costs per unit: Direct materials $6.00 Direct manufacturing labor $2.60 Manufacturing overhead $3.40 Selling costs $5.00 y Annual fixed costs $126,000 Tax Rate 35% 1. Compute for the breakeven point in Units and Pesos. 2. How much is the selling price per product to earn an after tax income of $93,000 assuming that the company sold 45,000 units? (round it to whole 3. Calculate the Sales required to earn a gross income of $110,000. mber)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Northpoint Company sells several products. Information of average revenue and costs are as
follows: (Final answer must be DOUBLE RULE)
$30.00
Selling price per unit
Variable costs per unit:
Direct materials
$6.00
Direct manufacturing labor
$2.60
Manufacturing overhead
$3.40
Selling costs
$5.00 y
Annual fixed costs
$126,000
Tax Rate
35%
1. Compute for the breakeven point in Units and Pesos.
2. How much is the selling price per product to earn an after tax income of $93,000
assuming that the company sold 45,000 units? (round it to whole number)
3. Calculate the Sales required to earn a gross income of $110,000.
4. Assuming the Tax rate is 40% and the fixed cost is increased by 25%, if the company
wants to earn after tax income of $150,000, how many units must be sold?
Transcribed Image Text:Northpoint Company sells several products. Information of average revenue and costs are as follows: (Final answer must be DOUBLE RULE) $30.00 Selling price per unit Variable costs per unit: Direct materials $6.00 Direct manufacturing labor $2.60 Manufacturing overhead $3.40 Selling costs $5.00 y Annual fixed costs $126,000 Tax Rate 35% 1. Compute for the breakeven point in Units and Pesos. 2. How much is the selling price per product to earn an after tax income of $93,000 assuming that the company sold 45,000 units? (round it to whole number) 3. Calculate the Sales required to earn a gross income of $110,000. 4. Assuming the Tax rate is 40% and the fixed cost is increased by 25%, if the company wants to earn after tax income of $150,000, how many units must be sold?
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