Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Bath suppliers LTD is a manufacturer of standard fiberglass.

Bath suppliers LTD is a manufacturer of standard fiberglass.

Bath suppliers LTD is a manufacturer of standard fiberglass bathtubs with the following costs and selling price.
Selling Price $140 per unit
Variable Manufacturing costs $64 per unit
Fixed Manufacturing Costs $660,000 per year
Variable Selling Expenses $12 per unit
Fixed Selling Expenses $148,000

A) Determine the breakeven point in units and sales dollars.
B) Determine the number of units that must be sold to earn $109,120 after tax of 38 percent.
C) If budgeted pre-tax operating income is $192,000 what is the margin of safety in units?
D) If pre-tax operating income is $192,000--1) What is the degree of operating leverage? 2) What would be the dollar increase in profit if sales icnreased by 10 percent?

May 29 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions