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Last year the shirts sold for $24.00 each, and variable costs were $11.40 per shirt. At this cost structure, the breakeven point was 20,000 shirts. However, the company actually earned $15,120 in net income.
This year, the company is increasing its price to $27.00 per shirt. Variable costs per shirt will increase by one-third, and fixed expenses will increase by $30,900. The tax rate will remain at 40%.
Contribution format income statement for last year.
Calculate the contribution margin per unit for this year
How many T-shirts must the company sell this year to break even?
How many T-shirts must the company sell this year in order to earn $28,980 in net income?
Prepare a budget for production of (a) 7,000 units and (b) 9,000 units, showing distinctly marginal cost and total cost. Assume that the administration expenses are rigid for all levels of production.
Compute the company's break-even point in number of wide-body passenger jets and in dollars of sales. Suppose the company plans to sell 99 wide-body passenger jets in 2012. Compute the company's projected operating profit.
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Boone Company has the following balances as of December 31, 2009. Material Inventory $15,000 Work in process inventory $36,200 Finished goods inventory $50,100.
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show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 7,500, 10,000, and 12,500 units.
Polaris reports in notes to its financial statements that, in addition to its products sold, it includes the following costs (among others) in cost of sales: customer shipping and handling expenses, warranty expenses, and depreciation expense on asse..
Determine the cost formula from the information provided by John Cruise and evaluate the cost formulas and Determine the costs as requested by Jon Cruise
Marion Chemicals produces a chemical used as a base in paints.
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