please solve the  sub-parts to be solved. thanks  Ziggy Creations makes and sells a single product.  Individual product details are as follows:  Selling price                          $ 45 Direct materials                      $20 Direct labour                           $10 Fixed Costs                              $480 000     Estimated sales                       36 000 units Production capacity                40 000 units         d)     If Ziggy’s required a profit of $90 000, what level of sales dollars would be required?              e)      Variable costs are to increase by $5 per unit. If Ziggy’s wants to maintain a profit of $90,000, what will be the required sales volume?  Can Ziggy’s achieve this new estimated sales volume?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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please solve the  sub-parts to be solved. thanks 

Ziggy Creations makes and sells a single product.  Individual product details are as follows:

 Selling price                          $ 45

Direct materials                      $20

Direct labour                           $10

Fixed Costs                              $480 000    

Estimated sales                       36 000 units

Production capacity                40 000 units

 

 

 

 

d)     If Ziggy’s required a profit of $90 000, what level of sales dollars would be required?         

 

 

e)      Variable costs are to increase by $5 per unit. If Ziggy’s wants to maintain a profit of $90,000, what will be the required sales volume?  Can Ziggy’s achieve this new estimated sales volume?  

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