Question
In: Accounting
Q3 Ibrahim Corporation manufactures product A. Following is information for next year’s operations, based on an estimated...
Q3
Ibrahim Corporation manufactures product A. Following is information for next year’s operations, based on an estimated volume of 40,000 units:
Expected revenues $2,000,000
Unit costs:
Direct materials $ 7
Direct labor 16
Variable overhead 6
Fixed manufacturing overhead 3
Total $32
Other fixed costs:
Administration, marketing, etc. $230,000
Income tax rate 30%
a. What is the breakeven point for next year?
b. What is next year’s projected after-tax income?
c. Chose a target after-tax income. Estimate the number of units that must be sold to reach this target.
Solutions
Expert Solution
Answer: -
| a. Break even Point | 16667 | units |
| b. Projected After tax income | $ 343,000.00 | |
| c. Desired Unit Sales | 63333 | units |
please find the below table useful to compute the desired results: -
ekkarill92 answered 2 years agoRelated Solutions
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plz don't put the answer in photos
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