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Slugger Co. sells 15,000 units to retailers for $10 per unit. The unit variable cost is $2 with a selling commission of 10% of sales. Fixed manufacturing costs total $55,000, and fixed selling and administrative costs total $22,000. The income tax rate is 40%.
REQUIRED: (Round your answer nearest dollar amounts, if necessary)
Question 1: Compute the "sales in dollars" needed to achieve a target net income of $6,000.
Question 2: Compute the new "break-even point" in units if total fixed cost is increased by $50,000, and a target net income is $12,000.
Question 3: Calculate the required sales units to achieve operating income of 25 percent of sales revenue.
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