Edgar co has a tax rate of 35 the company sells a product

Reference no: EM13569608

Required: For each of the following situations, calculate the missing items.

(a) Acme, Inc. Sells its products for $45. The variable cost per unit is $24, and fixed cost are $1,672,500. What

Profit will Acme make if 225,5000 units are produced and sold? I got $3,052,500?

(b) Beta Co. can sell 140,000 units in one year. Variable costs are $130 per unit, and fixed costs are $4,040,000.

how much should Beta sell its product for per unit if the company wants to make a pretax profit of $2,260,000?

(c) Captiol Enterprises sells 85,400 units in one year. The product has a contribution margin of $44, and fixed cost are $1,907,600. What is Capitol Enterprises' pretax profit?

(d) Denson, Inc. Sells its products for $135. The product has a variable cost of $105 and fixed cost of $36,000,000.

How many units should the company sell if it wants to earn pretax profits of $27,000,000?

(e) Edgar Co. has a tax rate of 35%. The company sells a product with an $18.50 contribution margin; fixed costs of $9,000,000 are incurred by the company annually. How many units should the company sell if it wants to earn after tax profits of $3,325,000?

Reference no: EM13569608

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