Assignment:
A company whose fixed costs are $ 360,000 can elaborate a maximum figure of 12,000 units during the year. For each product sold can make a profit per unit of $ 48. The variable cost incurred in the preparation for each unit is $ 12. The company is interested in getting answers to these questions
Question 1- What is the total income should be the company to recover the fixed cost and variable cost?
Question 2- What is the number of units to sell to recover its costs totals?
Question 3- In case the company decides Use up the total plant capacity which would be the profit that it could get:
a) Before Tax Payment
b) After tax payment (tax rate 25%)
Question 4- What will be the total income that will allow the company to recover the cost totals and get the expected gain?
Question 5- If the company plans to make a profit of $ 60.000 say how many units must be sold for profit planned?
Question 6- What would be the total income that will allow the company to recover costs and get the above totals gain?
Question 7- What is the total income that the company should have to cover fixed costs, variable, expected profit and paying taxes?
Question 8- Use the following summary table and demonstrate whether the total of income earned in $60,000 are sufficient to recover costs, and get tax gain of $ 60,000 planned:
a.Total Variable Cost $
b.Total Fixed Cost $
c.Net Income before tax $.