About cost behavior and assume labor cost

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Walt's Woodworking Company's Yearly expenses

A. Units Sold= 50,000

B. Sales price per unit= $70

C. Carpenter labor= 600,000

D. Wood to make shelves= 450,000

E. Sales staff salaries= 80,000

F. Office and showroom rental expenses= 150,000

G. Depreciation on carpentry equipment=50,000

H. Advertising= 200,000

I. Sales commissions based on number of units sold= 180,000

J. Misc fixed manufacturing overhead= 150,000

K. Rent for building where shelves are made= 300,000

L. misc variable= 350,000

M, Depreciation of office equipment= 10,000

 

Make appropriate assumptions about cost behavior and assume labor cost vary directly with the number of units produced. How many units must the company sell in order to earn a pretax profit of $500,000?

Reference no: EM13788184

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