Solution-How many tuff-pups must be sold to break-even

How many tuff-pups must be sold to break-even

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Reference no: EM132611387

Reagan Inc. has developed a chew-proof dog bed 'The Tuff-Pup'. Fixed costs are $250 497 per year. The selling price for the Tuff-Pup is $42 per unit, and the variable cost is $29 per unit.

Requirements:

Question a) Calculate the contribution margin per Tuff-Pup.

Question b) How many Tuff-Pups must be sold to break-even?

Question c) Suppose that Reagan wants to earn $109 993 in profit before tax. How many Tuff-Pups must be sold?

Question d) How much is the profit after tax for Reagan given that the corporate tax rate is 30%? Use relevant information from requirement 'c'. (Round to nearest dollar)

Reference no: EM132611387

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How many tuff-pups must be sold to break-even

Reference no: EM132611387

Reference no: EM132611387

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