According to the information above a retail store chain

Reference no: EM13589945

A notebook manufacturer makes notebooks with the following costs and sales data:

Variable direct materials cost per notebook of $0.75
Varaible direct labor cost per notebook of $0.85
Monthly fixed costs of $12,500
Selling price of $4/notebook
Tax rate of 30%
Projected monthly after income is 33,250

1.According to the information above, what is the notebook company's projected monthly volume of cupcakes sold?

2.According to the information above, what is the company's breakeven point (in number of notebooks)?

3.According to the information above, a retail store chain offers to buy 1,000 notebooks per month for the next six months if the company will accept a price of $2500 for each 1,000 notebook shipment. Should the company accept the contract (assume the company has adequate excess capacity). Why or why not?

Reference no: EM13589945

Questions Cloud

Identify issues confronting modern law enforcement : identify issues confronting modern law enforcement corrections and the court system reflect on policies that

Cactus construction sells 1000000 of 8 bonds on january 1 : cactus construction sells 1000000 of 8 bonds on january 1 20xx. the bonds are unsecured but registered to the name of

Assume that simple co had credit sales of 259000 and cost : assume that simple co. had credit sales of 259000 and cost of goods sold of 159000 for the period. simple uses the

A taxi company charges two dollars for the first mile or : a taxi company charges two dollars for the first mile or part of a mile and 20 cents for each succeeding tenth of a

According to the information above a retail store chain : a notebook manufacturer makes notebooks with the following costs and sales datavariable direct materials cost per

Describe how the rate of change of t with respect to t : question when you turn on a hot-water faucet the temperature t of the water depends on how long the water has been

Prepare the 2012 form 1040 and all other required federal : 1. prepare the 2012 form 1040 and all other required federal forms and schedules for brett simons. the returns

The table gives population densities for ring-necked : the table gives population densities for ring-necked pheasants in number of pheasants per acre on pelee island

Organization structure and behaviour important for : important for organizations in india to search for hybrid improvised ltbrgtimportant for organizations in india to

User Account

All Pages