Show your work
4. L.F Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the break-even point in dollars.
5. L.F Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Dunkin company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the unit sales to earn the target after-tax net income.
6. LFCompany manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Dunkin company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the dollar sales to earn the target after-tax net income.
Solution Summary
The solution is provided in three parts as follows.
1. Computation of the break-even point in dollars.
2. 5 Computation of the unit sales to earn the target after-tax net income and Verification of Answer:
3. Sales Dollars required to earn After Tax Net income of 843750 or before tax net income of 1125000=
Computing projected operation profit and break-even points. ... 115x = 185x - 500,000 For breaking-even, operating profit ... So we see that the break even number of ...
Prepare a cash budget for RRE; Find the break-even point in units for Vikram Kundu. (Cash budget ... renegotiated. Break-even Point Problem. Return ...
Computing a Break Even for New Skis. ... The difference between the two is that at breakeven your target ... zero, you are setting your goal above the break-even point. ...
Computing Leverage and Break-Even Analysis. Assuming that all other factors remain unchanged, determine how a firm's breakeven point is affected by each of the ...
... P18-26A Computing breakeven sales and sales needed to earn a ... CVP formula to compute Big Time's breakeven revenue in ... Show the break point, the sales revenue line ...
Break-Even Computation. ... We calculated that the breakeven point would be 16,000 units ... we must make and sell 16,000 units to make $0 profit (or break even), and we ...
