Author Question: Use the information provided below to answer the following questions:Sales ($50 per unit)$10,000Cost ... (Read 61 times)

dusk108 · **on:** Feb 5, 2023

Question 1

Marling Machine Works produces soft serve ice cream freezers. The freezers sell for $12,000, and variable costs total $8,200 per unit. Marling incurs $6,840,000 in fixed costs during the year. The company's tax rate is 25%.

Required:

How many freezers must Marling sell to generate net income of $3,450,000?

Question 2

Use the information provided below to answer the following questions:

Sales ($50 per unit)	$10,000
Cost of goods sold (all variable costs)	6,000
Fixed costs	2,800

Required:

a.	How many units would the company need to sell to earn $4,000 in operating income?

b.	How many units would the company need to sell to earn $4,000 in net income

if the tax rate is 20%?

c.	By how much would operating income change from part (b) with a 10% increase

in units sold?

romyclv · **Reply #1 on:** Feb 5, 2023

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