Breed products has performed extensive studies on its costs


Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold): Total Annual Costs (150,000 units) Direct material $ 200,000 Direct labor 180,000 Manufacturing overhead 150,000 Selling, general, and administrative 100,000 Total $ 630,000 Required: a. Compute Breed's unit selling price that will yield a profit of $600,000, given sales of 150,000 units. (Round your answer to 2 decimal places.) b. Compute Breed's dollar sales that will yield a projected 20 percent profit on sales, assuming variable costs per unit are 60 percent of the selling price per unit and fixed costs are $225,000. c. Management believes that a selling price of $9 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)? Here it is!

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Financial Accounting: Breed products has performed extensive studies on its costs
Reference No:- TGS01667932

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