Last year, Bridgerton Co. had sales of $1,625,000 on the sale of 25,000 units,variable costs of $450,000 and fixed costs of $250,000. Assume a tax rate of 30%.What level of sales in units would be required to achieve an after-tax profit of$110,000 (rounded to the nearest whole number)?410,6648,66310,2639,264

The break-even sales are the sales where business earns no profit or loss during the period. The…

Answered: Last year, Bridgerton Co. had sales of…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company's variable costs are 60% of the selling price and fixed costs are $121,900. If the company's tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82 b. $1.57 c. $2.35 d. $2.05 e. $1.17 f. $1.37 g. $1.77 h. None of the above.
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company’s variable costs are 60% of the selling price and fixed costs are $121,900. If the company’s tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82b. $1.57c. $2.35d. $2.05e. $1.17f. $1.37g. $1.77h. None of the above.
The Gomex Corp. sells product A for P90 each. Variable costs are P40 per unit. Fixed Costs are P585,000. Its current sales is P963,000. How much sales (in units) must be reached to realize a net income of P120,000 after income taxes, if tax rate is 25%?
The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00 Variable cost per unit: $15.00 Total fixed costs: $100,000 How many units does the company have to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
The following annual information is for Bressler Corporation: Product X Revenue per unit: $10.00 Variable cost per unit: $5.00 Total fixed costs: $100,000 How many units the company has to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. If the firm pays income taxes on its income at a rate of 40 percent, what sales price must the firm use to obtain an after-tax profit of P24,000 on the 40,000 units?
Bluejeans Company has an after-tax profit of P140,000. Bluejeans hás a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%? (use two decimal places, e.g. 82.20%, 55.31% or 0.82, 0.55, these will be counted as correct answers)
Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a profit of P350,000 after tax of 30%. Fixed costs are estimated at P480,000 for the period. Variable costs are equal to two thirds of sales revenue. To meet this objective, what price must be charged for each unit of product?
Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The variable cost per unit is $12 and annual fixed cost is $345,000. Assume a tax rate of 28%. Required: Calculate the following: Break-even point in dollars. Margin of safety in dollars. Number of units Ratchet Ltd has to sell to earn an after-tax profit of $420,000.
Assuming that the company has a current sales of $120,000 with a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. What is the company's total fixed costs?

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