Fixed overhead and fixed selling and administrative costs


In 2014, X Company sold 54,500 units of its only product. The following is budgeted per-unit information for 2015:

Selling price

$32.90

Direct materials

5.61

Direct labor [all variable]

5.81

Variable overhead

4.44

Variable selling and administrative

5.24

 

Fixed overhead and fixed selling and administrative costs are expected to total $305,200. If X Company wants to earn $41,000 after taxes in 2015, and the tax rate is 31%, how many units must it sell?

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Financial Accounting: Fixed overhead and fixed selling and administrative costs
Reference No:- TGS01222004

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