Dopler Inc. manufactures a product that sells for $50. The variable costs per unit are: Budgeted fixed manufacturing overhead is estimated at $500,000 and budgeted fixed selling, general and administrative costs are expected to be $300,000. Variable selling costs are $6 per unit.
a. Determine the break-even point in units.
b. Determine the number of units that must be sold to earn $100,000 in profit before taxes.
c. What dollar amount of sales must be attained in order to earn $300,000 in profit before taxes?
d. If there is a 40 percent tax rate, determine the sales level in dollars that must be attained in order to generate an after-tax profit of $300,000.

Question

Dopler Inc. manufactures a product that sells for $50. The variable costs per unit are:  Budgeted fixed manufacturing overhead is estimated at $500,000 and budgeted fixed selling, general and administrative costs are expected to be $300,000. Variable selling costs are $6 per unit.
a. Determine the break-even point in units.
b. Determine the number of units that must be sold to earn $100,000 in profit before taxes.
c. What dollar amount of sales must be attained in order to earn $300,000 in profit before taxes?
d. If there is a 40 percent tax rate, determine the sales level in dollars that must be attained in order to generate an after-tax profit of $300,000.

Quizplus · Accepted Answer

The Answer of Dopler Inc. manufactures a product that sells for $50. The variable costs per unit are:  Budgeted fixed manufacturing overhead is estimated at $500,000 and budgeted fixed selling, general and administrative costs are expected to be $300,000. Variable selling costs are $6 per unit.
a. Determine the break-even point in units.
b. Determine the number of units that must be sold to earn $100,000 in profit before taxes.
c. What dollar amount of sales must be attained in order to earn $300,000 in profit before taxes?
d. If there is a 40 percent tax rate, determine the sales level in dollars that must be attained in order to generate an after-tax profit of $300,000.