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A company whose fixed costs of \$360,000 can elaborate: CVP

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A company whose fixed costs are \$ 360,000 can elaborate a maximum figure of 12,000 units during the year. For each product sold can make a profit per unit of \$ 48. The variable cost incurred in the preparation for each unit is \$ 12. The company is interested in getting answers to these questions

1- What is the total income should be the company to recover the fixed cost and variable cost?

2- What is the number of units to sell to recover its costs totals?

3- In case the company decides Use up the total plant capacity which would be the profit that it could get:
a)Before Tax Payment
b)After tax payment (tax rate 25%)

4- What will be the total income that will allow the company to recover the cost totals and get the expected gain?

5- If the company plans to make a profit of \$ 60.000 say how many units must be sold for profit planned?

6- What would be the total income that will allow the company to recover costs and get the above totals gain?

7- What is the total income that the company should have to cover fixed costs, variable, expected profit and paying taxes?

8- Use the following summary table and demonstrate whether the total of income earned in \$60,000 are sufficient to recover costs, and get tax gain of \$ 60,000 planned:
a.Total Variable Cost \$
b.Total Fixed Cost \$
c.Net Income before tax \$.

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