The following data relate to a product sold by Nelson Company:

$\begin{array}{lr}
\text { Total variable costs } &\$ 90,000 \
\text { Total fixed costs } &27,000 \
\text { Predicted after-tax income (30\% tax) } &12,600\
\text { Contribution margin per unit } &5
\end{array}$
(a)Calculate the number of units expected to be sold.
(b)Calculate the expected total dollar sales.

Question

The following data relate to a product sold by Nelson Company:

$\begin{array}{lr}
\text { Total variable costs } &\$ 90,000 \
\text { Total fixed costs } &27,000 \
\text { Predicted after-tax income (30\% tax) } &12,600\
\text { Contribution margin per unit } &5
\end{array}$
 (a)Calculate the number of units expected to be sold.
(b)Calculate the expected total dollar sales.

Quizplus · Accepted Answer

The Answer of The following data relate to a product sold by Nelson Company:

$\begin{array}{lr}
\text { Total variable costs } &\$ 90,000 \
\text { Total fixed costs } &27,000 \
\text { Predicted after-tax income (30\% tax) } &12,600\
\text { Contribution margin per unit } &5
\end{array}$
 (a)Calculate the number of units expected to be sold.
(b)Calculate the expected total dollar sales.

The Following Data Relate to a Product Sold by Nelson