OutlawEX
03-01-2010, 09:10 PM
Ok I cant figure out how to do and solve these 3 questions. Can someone please help me
#1
CM of $32 per unit.
Presently selling 90,000 units and earning 240,000 after tax income. Taxes are $80,000 at 25% tax rate. If firm increases its after tax income to $300,000,how many more units must it sell?
#2
Alternative 1 Alternative 2
Variable cost per unit $8 $12
Fixed Cost $240,000 $140,000
Selling price perUnit $20 $20
If company expected sales volume is 35,000 units ,which alternative should be selected?
#3
Company reports following info. Units sold 1200,Unit sale price $30, unit variable cost $10, Total fixed cost $18000.
• Calculate pretax income
• Calculate degree of operating leverage
#4 Info of product expected to be produced and sold
Selling price $32 per unit
Variable cost $27 per unit
Total fixed Cost $850,000 per year
• Calculate CM per unit?
• Calculate BEU?
#1
CM of $32 per unit.
Presently selling 90,000 units and earning 240,000 after tax income. Taxes are $80,000 at 25% tax rate. If firm increases its after tax income to $300,000,how many more units must it sell?
#2
Alternative 1 Alternative 2
Variable cost per unit $8 $12
Fixed Cost $240,000 $140,000
Selling price perUnit $20 $20
If company expected sales volume is 35,000 units ,which alternative should be selected?
#3
Company reports following info. Units sold 1200,Unit sale price $30, unit variable cost $10, Total fixed cost $18000.
• Calculate pretax income
• Calculate degree of operating leverage
#4 Info of product expected to be produced and sold
Selling price $32 per unit
Variable cost $27 per unit
Total fixed Cost $850,000 per year
• Calculate CM per unit?
• Calculate BEU?