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You Have Been Provided with the Following Information Regarding the Ralston

Question 126

Essay

You have been provided with the following information regarding the Ralston Manufacturing Company:
Sales price $50 Variable manufacturing cost per unit 24 Fixed manufacturing costs per unit12 Variable marketing cost per unit 6 Fixed administrative costs per unit3\begin{array}{llr} \text {Sales price } &\$50\\ \text { Variable manufacturing cost per unit } &24\\ \text { Fixed manufacturing costs per unit} &12\\ \text { Variable marketing cost per unit } &6\\ \text { Fixed administrative costs per unit} &3\\\end{array}



This information is based on forecasted sales of 30,000 units.
Required:
(a) What is the expected operating profit for the upcoming year?
(b) What is the break-even point in units?
(c) If $160,000 of operating profit is desired, how many units must be sold?

Correct Answer:

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(a)[($50 ? $24 ? $6) × 30,000]...

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