CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Direct material Per Unit Total $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead Fixed selling and administrative $200,000 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675 b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). 0 * garden sheds c. How much revenue is generated from selling units calculated in part (b)? $ 0 × garden sheds

CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Direct material Per Unit Total $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead Fixed selling and administrative $200,000 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675 b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). 0 * garden sheds c. How much revenue is generated from selling units calculated in part (b)? $ 0 × garden sheds

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Clank Bicycles is a bicycle retailer that sells road bikes and mountain bikes. Mountain bikes accounts for 60% of the store’s total sales volume. The selling price and variable cost per unit are as follows: Road bike Mountain bike Selling price 4,700 3,400 Product cost 3,080 2,600 Sales commission 60 40 Annual fixed costs are $113,400. Ignore tax effects and assume a constant sales mix. Required: Calculate the break-even point in units and dollars. Calculate how many bicycles of each type needed to be sold to earn a target net profit of $340,200?Hint: Same formula as a single product, but divided by ‘weighted average unit contribution margin’ instead of ‘unit contribution margin’.
Gelbart Company manufactures gas grills. Fixed costs amount to $20,688,000 per year. Variable costs per gas grill are $320, and the average price per gas grill is $800. Required: 1. How many gas grills must Gelbart Company sell to break even? gas grills 2. If Gelbart Company sells 46,730 gas grills in a year, what is the operating income? 3. If Gelbart Company’s variable costs increase to $336 per grill while the price and fixed costs remain unchanged, what is the new break-even point? If required, round your answer to the nearest whole number. gas grills
1. Jeff Music sells its brand of banduria at $167.00 each. The company spends costs of $38.00 to produce each banduria. The corresponding weekly fixed costs are $16,900.00. a. What is the linear equation of the weekly profit, P, to the quantity of banduria produced, X. b. Determine the break-even quantity? c. What is the break-even revenue? d. What will be the profit or loss if there will be 147 qty of banduria?
Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.) Compute the number of units and sales revenue needed to achieve a 12% net profit margin. (Assume a 40% income tax rate.)
Munabhai
bed Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $127.00 per service 89.00 per service 119,548 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? ook b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $32,604 after taxes? a Required sales in a year to break even int rences b. Required sales in a year to earn an annual operating profit of $32,604 after taxes: cleaning services cleaning services
CVP; multiproduct Mel's Accessories sells wallets and money clips. Historically, the firm's sales have averaged three wallets for every money clip. Each wallet has an $8 contribution margin, and each money clip has a $6 contribution margin. Mel's incurs fixed cost in the amount of $180,000. The selling prices of wallets and money clips, respectively, are $30 and $15. The corporate-wide tax rate is 40 percent. a. How much revenue is needed to break even? $ 756,000 x How many wallets and money clips does this represent? 648,000 x wallets 108,000 x money clips b. How much revenue is needed to earn a pre-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. $ 0 c. How much revenue is needed to earn an after-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your…
Q4.
17. Jolo Corporation wants to revise the sales commission payment scheme. Currently, the 4 sales person receive a monthly salary of P5,000 each and a P5 for every unit sold. The new payment scheme will require the company to pay each sales person a monthly salary of P10,000 and an additional P3 for every unit sold. What is the number of units sold wherein the company will be indifferent between the two payment scheme? OA. 10,000 units OB. 8,571 units O C. 2,500 units OD. None of the above
CVP; taxesHamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Per Unit Total Direct material $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead $200,000 Fixed selling and administrative 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?Note: Do not round until your final answer.Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). garden shedsc. How much revenue is generated from selling units calculated in part (b)? $Answer
Oops, JAC forgot about taxes. Assume a tax rate of 21% Using information and your calculations from xlsx 7 determine the following: 1.) Assuming a desired after tax profit of $16,000, what is the pretax profit JAC has to earn? 2.) How many units does JAC have to sell to earn the desired after tax profit of $16,000. 225 units at $100 per unit Variable cost $20 per unit Contribution margin = Fixed costs = $18,000 Operating income = JAC has a desired profit of $16,000 1.) Calculate the number of units they need to sell to accomplish this. 2.) Calculate the dollar amount of sales they need to accomplish this. 1. Required sale for target profit = ( Fixed cost + Desired profit ) / Contribution marginContribution margin = Sales price - Variable cost = 100 - 20= 80Required sale for target profit = ( 18,000 + 16,000 ) / 80= 34,000 / 80= 425 units The dollar amount of sales for target profit =( Fixed cost + Desired profit ) / Contribution margin ratioContribution margin ratio = Contribution /…
what is the break even point in units and the break even point in sales dollars?