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Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000. (1) Use this information to compute the company's (a) contribution margin, (b) contribution margin ratio, (c) break-even point in units, and (d) break-even point in dollars of sales. e. Apollo Company management targets an annual after-tax income of $840,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $630,000. Compute the (1) unit sales to earn the target after-tax net income and (2) dollar sales to earn the target after-tax net income.f. What is the margin of safety in units assuming Apollo company achieve the target after-tax income of $840,000
What are the basic characteristics of a relevant cost? Why are future costs not always relevant? Are all relevant costs found in accounting records?
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