Reference no: EM13788184
Walt's Woodworking Company's Yearly expenses
A. Units Sold= 50,000
B. Sales price per unit= $70
C. Carpenter labor= 600,000
D. Wood to make shelves= 450,000
E. Sales staff salaries= 80,000
F. Office and showroom rental expenses= 150,000
G. Depreciation on carpentry equipment=50,000
H. Advertising= 200,000
I. Sales commissions based on number of units sold= 180,000
J. Misc fixed manufacturing overhead= 150,000
K. Rent for building where shelves are made= 300,000
L. misc variable= 350,000
M, Depreciation of office equipment= 10,000
Make appropriate assumptions about cost behavior and assume labor cost vary directly with the number of units produced. How many units must the company sell in order to earn a pretax profit of $500,000?
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