Question:
The following information for Jennifer's Framing Supply is given for March:
|
Sales.
|
$360,000
|
|
Fixed manufacturing costs
|
35,000
|
|
Fixed marketing and administrative costs
|
25,000
|
|
Total fixed costs
|
60,000
|
|
Total variable costs
|
240,000
|
|
Unit price
|
90
|
|
Unit variable manufacturing cost
|
55
|
|
Unit variable marketing cost
|
5
|
Compute the following:
a. Monthly operating profit t when sales total $360,000 (as here).
b. Break-even number in units.
c. Number of units sold that would produce an operating profit t of $120,000.
d. Sales dollars required to earn an operating profit t of $20,000.
e. Number of units sold in March.
f. Number of units sold that would produce an operating profit t of 20 percent of sales dollars.