John Marquez Pogi Company manufactures and sells adjustable canopies that attach to motor homes and trailers. The market covers both new unit purchasers as well as replacement canopies. John developed its business plan based on the assumption that canopies would sell at a price of $400 each. The variable costs for each canopy were projected at $250, and the annual fixed costs were budgeted at $100,000. John's after-tax profit objective was $240,000; the company's effective tax rate is 60%. While John's sales usually rise during the second quarter, the May financial statements reported that sales were not meeting expectations. For the first 5 months of the year, only 350 units had been sold at the established price, with variable costs as planned, and it was clear that the after- tax profit projection would not be reached unless some actions were taken. John's president assigned a management committee to analyze the situation and develop an alternative course of action. The following was presented to the president. Reduce the sales price by $40. The sales organization forecasts that with the significantly reduced sales price, 2,700 units can be sold during the remainder of the year. Total fixed and variable unit costs will stay as budgeted. 1. Assuming no changes were made to the selling price or cost structure, how many units must John sell to break even? 2. Assuming no changes were made to the selling price or cost structure, how many units must John sell to achieve its after-tax profit objective?

Deluxe Homes is a residential Home Builder. Based on their current production of 300 homes per year, they currently make a profit of $20,000 per unit, based on the following costs per unit: Direct labor $ 20,000 Direct materials 200,000 Variable overhead 30,000 Fixed overhead 40,000 Variable selling costs 10,000 Fixed selling costs 10,000 Total costs per unit $310,000 Required Each of these are separate situations: A. Prepare an income statement based on the information provided. B. What is the profit and cost per unit if production is increased to 400 homes per year, and there is an increase of $1.50 million in total fixed overhead costs?

Steps Inc sells step aerobic class equipment. The equipment sells for $15 / unit. The variable cost is $10 per unit and fixed costs are $1,750,000. What are number of units the company must sell if the company wants to achieve a target profit of $400,000

Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:   Ceiling Fan Table Fan Price $54 $12   Unit variable cost $11 $9   Direct fixed cost $20,800 $41,000   Common fixed selling and administrative expenses total $84,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = _______ : __________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans _______     3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales…

Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $540 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $540 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $540 each. 5. Suppose Sandy Bank wants to earn $76,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $540 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 This year Sandy Bank expects to sell 760 canoes for $540 each. Prepare a contribution margin income statement for the company. Note: Round your intermediate calculations to 2 decimal…