Answer:
Instructions are listed below
Explanation:
Giving the following information:
The sales price is $100.
Variable costs:
Manufacturing $ 30 per unit
Selling $12 per unit
Fixed costs:
Manufacturing $ 360,000 per year
Selling and administrative $ 162,000 per year
A)
Break-even point (units)= fixed costs/ contribution margin
Break-even point (units)= (360000+162000)/(100 - 42)= 9000 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 522,000/(58/100)= $90,000
B) Profit= 232,000
Break-even point (units)= (522,000 + 232,000)/58= 13,000 units
Break-even point (dollars)= 754,000/ 0.58= $1,300,000
C) No variable selling costs. Q= 12,000
12,000= (360,000 + X + 232000)/(100-30)
(12000*70)-232000 - 360000= X
X= 248,000
