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book Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins cover

Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Edition 6ISBN: 978-0078025532
book Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins cover

Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Edition 6ISBN: 978-0078025532
Exercise 27
CVP Analysis with Income Taxes Cohen Company produces and sells socks. Variable costs are $6 per pair, and fixed costs for the year total $75,000. The selling price is $10 per pair.
Required Calculate the following:
1. The breakeven point in units.
2. The breakeven point in sales dollars.
3. The units required to make a before-tax profit of $40,000.
4. The sales in dollars required to make a before-tax profit of $35,000.
5. The sales, in units and in dollars, required to make an after-tax profit of $25,000 given a tax rate of 30%.
Explanation
Verified
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1.
Breakeven sales can be calculated as
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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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