Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales price= 25
Variable manufacturing cost per unit= 12
Variable marketing cost per unit= 3
Fixed manufacturing costs= 80,223
Fixed administrative costs= 40,000
This information is based on forecasted sales of 25,000 units.
A) Operating profit:
Sales= 25*25,000= $625,000
Variable costs= (15*25,000)= (375,000)
Fixed costs= (80,223 + 40,000)= (120,223)
Operating profit= $129,777
B) Break-even point= fixed costs/ contribution margin
Break-even point= 120,223/ (25 - 15)= 12,022 units
C) Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 120,223/ (10/25)= $300,557.5
D) Break-even point= (fixed costs + desire profit)/ contribution margin
Break-even point= (120,223 + 80,000) / 10= 20,022 units
E) Break-even point (dollars)= (fixed costs + desire profit)/ contribution margin ratio
Break-even point (dollars)= (120,223 + 75,000) / (10/25)= $488,057.5
