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Company to make an after-tax operating profit

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Company produces one type of sunglasses with the following costs and revenues for the year: Total Revenues............................................................................................ $5,000,000 Total Fixed Costs ........................................................................................ $1,000,000 Total Variable Costs .................................................................................... $3,000,000 Total Quantity Produced and Sold....................................................... 1,000,000 Units

a. What is the selling price per unit?

b. What is the variable cost per unit?

c. What is the contribution margin per unit?

d. What is the break-even point in units?

e. Assume an income-tax rate of 40 percent.

What quantity of units is required for PJ Company to make an after-tax operating profit of $1,200,000 for the year?

Reference no: EM131065272

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