Nike inc. manufactures a single product thats sells for $180 per unit and its total variable cost is $135 per unit. The company's annual Fixed Cost is $562,500.
1. Please use the above information to compute: SHOW ALL WORK
a. Contribution Margin
b. Contribution Margin Ratio
c. Break-Even-Point in Units
d. Break-Even-Point in Dollar of Sales
e. Prepare an Income Statement at Break-Even-Point for the year ended December 31, 2012
2. If Nike Management targets an annual after-tax income of $810,000 in Problem 1 above, and the compny is subject to a 20% income tax rate, assume that fixed cost remains a $562,500, Compute:
a. United Sales to earn the targeted after-tax Net Income
b. Dollr Sales to earn the Targeted after-tax Net Income