Solution-What are expected operating profits for the

What are expected operating profits for the upcoming year

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Reference no: EM132710368

You have been provided with the following information regarding the Pharma Manufacturing Company:

Sales Price $25

Variable manufacturing cost per unit 12

Variable marketing cost per unit 3

Fixed manufacturing costs 180,000

Fixed administrative costs 40,000

This information is based on forecasted sales of 25,000 units.

Required:

Problem (a) What are the expected operating profits for the upcoming year?

Problem (b) What is the break-even point in units?

Problem (c) What is the break-even point in dollars?

Problem (d) If $80,000 of operating profits is desired, how many units must be sold?

Problem (e) How much in sales dollars is required to generate operating profits of $75,000?

Reference no: EM132710368

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What are expected operating profits for the upcoming year

Reference no: EM132710368

Reference no: EM132710368

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