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Author Question: Use the information provided below to answer the following questions:Sales ($50 per unit)$10,000Cost ... (Read 109 times)

dusk108

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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 costs2,800

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?


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Marked as best answer by dusk108 on Feb 5, 2023

romyclv

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dusk108

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


Kedrick2014

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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