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matrenka [14]
3 years ago
12

Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed co

sts are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income.
a. 4,333.
b. 7,500.
c. 6,650.
d. 13,300.
e. 11,750.
Business
1 answer:
uysha [10]3 years ago
6 0

Answer:

Break-even point in units= 13,300

Explanation:

Giving the following information:

Unitary selling price= $450

Fixed cost= $870,000

Unitary variable cost= $300

Desired profit= $1,125,000

<u>To calculate the units to be sold, we need to use the break-even point with desired profit:</u>

<u></u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (870,000 + 1,125,000) / (450 - 300)

Break-even point in units= 13,300

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Answer:

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Explanation:

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8 0
3 years ago
Warner Corporation purchased a machine 7 years ago for $405,000 when it launched product P50. Unfortunately, this machine has br
maxonik [38]

Answer:

1. $46,550

2. $405,000

3. $450,600

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4 years ago
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