; 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: 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 sheds c. How much revenue is generated from selling units calculated in
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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:
| Per Unit | Total | |
|---|---|---|
| Direct material | $800 | |
| Direct labor | 90 | |
| Variable production |
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 sheds
c. How much revenue is generated from selling units calculated in part (b)? $Answer
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