Total Fixed Cost $600,000
Plant Capacity 70,000 units
Desired Profit $150,000
Unit Price $50
Variable Cost $30
Tax Rate 25%

With this information, calculate the answers to the following questions:

1) Calculate what the total income the company must get its sales to cover the Total Fixed Cost, Total Variable Costs and the expected gain (Desired Profit).

2) What is the number of units to be produced and sold for the total costs are equal to total income.

3) What is the total income that the company should have with their sales to cover the total costs for the payment of taxes and the expected gain.

4) What is the plant capacity used when the firm produces the number of units that allows you to recover total costs, payment of taxes and the expected gain.

5) Check whether the total income received in # 3 was sufficient to cover the Total Fixed Cost Total Variable Cost and Payment of Taxes and planned profit (Desired Profit). (Perform the corresponding demo)

6) Calculate the profit which would be needed before and after payment of taxes if the company would use the plant that becomes available after it arrives at Break Even.

7) What is the new price to be determined for each unit if the plant capacity used to derive the total income earned in # 3 is reduced by 5%.

8) What is the additional gain before and after payment of taxes which the company can get if you used the plant capacity still available after this was his expected profit after the payment of tax. (Desired Profit)

9) How many units should produce and sell the company for the income received to cover all costs, taxes and the expected gain.

... Dear student,. Answer is attached. This solution assists in providing a break-even analysis, target profit analysis, and determining operating leverage. ...

... The stores were broken down into four departments: tabletop ... ticket have to increase to breakeven if the ... from Accountant Question #1 The break-even point in the ...

... margin of safety current sales less breakeven sales = RM185 ... relates to each of the event, expressed on a ... The total monthly sales revenue required to break-even. ...

... 1) In Break Even analysis Fixed cost is separated from Total cost therefore at Break even point Contribution is just equal to Fixed cost and there is no profit ...

... the firm need to sell to break even e. If each of the possible price/variable cost combinations is equally probable, what is the firms expected breakeven point. ...

... A CVP analysis allowed me to analyze the cost ... of concert the ASDC would need to break-even just based upon the concerts, and to find its breakeven revenue and ...

... Calculating the Break-Even Point and the Contribution Margin, Retrieved October 28, 2008 from: http://members.tripod.com/devryproject/BreakEven.htm This site ...

... 1,000 level of production amount to $100,000, then the break-even volume in ... Answer: B Breakeven point in units = 200,000/[(200 - (100,000/1,000)] = 2,000 units. ...