Reference no: EM133017622

Question - Oriole Enterprises Ltd. has estimated the following costs for producing and selling 16,200 units of its product:

Direct materials $81,000

Direct labour 97,200

Variable overhead 48,600

Fixed overhead 30,000

Variable selling and administrative expenses 48,600

Fixed selling and administrative expenses 37,500

Oriole Enterprises' income tax rate is 40%.

Given that the selling price of one unit is $37, calculate how many units Oriole Enterprises would have to sell in order to break even.

Assume the selling price is $42 per unit. Calculate how many units Oriole Enterprises would have to sell in order to produce operating income of $24,500 before taxes.

Calculate what price Oriole Enterprises would have to charge in order to produce operating income of $27,000 after taxes if 7,500 units were produced and sold.

Calculate what price Oriole Enterprises would have to charge in order to produce a before-tax operating income equal to 30% of sales if 9,000 units were produced and sold.