Prachi company produces and sells disposable foil baking

Reference no: EM13603415

Prachi Company produces and sells disposable foil baking pans to retailers for $2.45 per pan. The variable costs per pan are as follows: DM $0.27 DL 0.58 Variable overhead 0.63 Selling 0.17 Fixed manufacturing costs total $131,650 per year. Administrative costs (all fixed) total $18,350. Required: 1.Compute the number of pans that must be sold for Prachi to break even. 2.How many pans must be sold for Prachi to earn a before-tax profit of $12,600? 3.What is the unit variable cost? What is the unit variable manufacturing cost? Which is used in c-v-p analysis and why? 4.Assuming a tax rate of 40%, how many pans must be sold to earn an after-tax profit of $25,200?

Reference no: EM13603415

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