Assume that Excellent DVDs pays income taxes of 30 per cent.
Required:
1 What is Excellent DVD’s break even point in units?
2 What is the company’s break even point in sales dollars?
3 How many units would Excellent DVDs have to sell in order to earn a profit of $400,000 after tax?
4 What is the firm’s safety margin?
5 If Excellent DVDs direct labor costs increase by 10 per cent, what selling price per unit of product must it charge to maintain the same contribution margin ratio?
Information to assist in answering the question:
Selling price per unit $ 2500
Variable cost per unit:
Direct material $ 8.20
Direct labor $ 4.00
Manufacturing overhead $6.00
Selling costs $1.60
Total variable costs per unit $ 19.80
Annual fixed costs:
Manufacturing overhead $288,000
Selling and administrative $414,000
Total fixed costs $702,000
Forecast annual sales (140,000 units) $3,500,000
Why work with us?
Authenticity:
All of our papers are authentic, as each paper of ours is composed according to your unique requirements.
Confidentiality:
We value you data. Our company is extremely efficient in guarding the privacy of our clients.
100% Money Back Guarantee:
In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund.
24/7 Support:
Our team members are available via email, live chat, and phone.
Revision Policy:
You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.
How the Platform Works
- Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
- Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
- In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
- To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
- The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.
