Question 7 EDP Enterprises sells mobile accessories for $120 per unit. It is noted that the firm's variable cost per unit is $35 for direct materials, $25 per unit for direct labor, and $13 per unit for overhead. The fixed production overhead per year is $35,200 and the fixed selling & administrative overhead is $43,299. how many units must be sold to achieve such target? Assume that income tax rate is at 30%. If the owner wants to earn an income before tax of $65,722-h
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- 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.Olivian Company wants to earn $420,000 in net (after-tax) income next year. Its product ispriced at $275 per unit. Product costs include: Direct materials $90Direct labor $65Variable overhead $16Total fixed factory overhead $440,000 Variable selling expense is $14 per unit; fixed selling and administrative expense totals $290,000.Olivian has a tax rate of 40 percent.Required:1. Calculate the before-tax profit needed to achieve an after-tax target of $420,000.2. Calculate the number of units that will yield operating income calculated in Requirement 1above. (Round to the nearest unit.)A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company wishes to earn an after-tax income of $35,000. Assume that the company has a 30% tax rate. a. How many units must be sold to achieve this after-tax income level? b. What level of pre-tax income must the firm earn to achieve the desired result described above? Can you show your workings please
- A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is Select one: a. 288 units. b. 30 units. c. 24 units. d.32 unitsOlivian Company wants to earn $360,000 in net (after-tax) income next year. Its product is priced at $300 per unit. Product costs include: Direct materials $90.00 Direct labor $66.00 Variable overhead $15.00 Total fixed factory overhead $400,000 Variable selling expense is $12 per unit; fixed selling and administrative expense totals $250,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of $360,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. If required, round your answer to the nearest whole unit. 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Do NOT round interim calculations and, if required, round your answer to the nearest dollar. Olivian CompanyIncome StatementFor the Coming Year Total $ $ $…Irene LLC produces and sells a single product with the following costs: Var SG&A $2 per unit Var Production $4 per unit Fixed SG&A $12,000 per year Fixed Production $15,000 per year The company produced and sold 6,000 units.At this level of activity, net operating income was $18,000.What was the company's sales price per unit?
- Cascade Enterprises enjoys a substantial amount of market power in this market. Cascade has fixed costs of $2,000. Currently Cascade Enterprise employs eight workers to produce 430 units of output and, the last unit of worker contribute 40 units of output. If Cascade Enterprises pay a monthly wage rate of $2,000 and charge $50 per units for its product, what is the amount of profit made? A. B. C. D. $3,500 $5,500 $ 60 $1,680CVP; taxesHamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Per Unit Total Direct material $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead $200,000 Fixed selling and administrative 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?Note: Do not round until your final answer.Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). garden shedsc. How much revenue is generated from selling units calculated in part (b)? $AnswerAcme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed costs are $26,000. Acme Inc. desires an income of $10,000 (after taxes) from sales of this product. Its income tax rate is 20%. How many units of Product Yellow must it sell to achieve its target income? Question 9Answer a. 12,500 units b. 2,600 units c. 3,850 units d. 3,600 units
- Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).Northpoint Company sells several products. Information of average revenue and costs are as follows: (Final answer must be DOUBLE RULE) $30.00 Selling price per unit Variable costs per unit: Direct materials $6.00 Direct manufacturing labor $2.60 Manufacturing overhead $3.40 Selling costs $5.00 y Annual fixed costs $126,000 Tax Rate 35% 1. Compute for the breakeven point in Units and Pesos. 2. How much is the selling price per product to earn an after tax income of $93,000 assuming that the company sold 45,000 units? (round it to whole number) 3. Calculate the Sales required to earn a gross income of $110,000. 4. Assuming the Tax rate is 40% and the fixed cost is increased by 25%, if the company wants to earn after tax income of $150,000, how many units must be sold?A company produces and sells a product. The unit variable cost is $77.41 and the unit selling price is $137.56. The fixed cost associated with the product is $240,557 per year. The company has an income tax rate of 20.74 percent. dollars per year if the company The operating income is produces and sells 9,460 units per year. 로
