Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
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