Calculate the target pre-tax in units

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Reference no: EM133126319

Problem 1 - ABC Company produces one product. The sales price per unit is $65 and the Variable cost per unit is $44. ABC Company has monthly fixed costs of $150,000.

Calculate the following:

Break-Even in Units

Break-Even in Dollars

Problem 2 - ABC Company would like to earn an after tax profit of $55,000 for the month. They are in a 30% tax bracket.

Calculate the following:

Target Pre-Tax in Units

Target Pre-Tax Target in Dollars

Problem 3 - ABC Company has $541,000 in expected sales for next month.

Calculate the following: Margin of Safety.

Problem 4 - ABC Company is considering purchasing a new machine that will automate several of their manufacturing operations. The new machine will increase fixed costs by $20,000 per month, and decrease the per unit variable cost by $4. Using cost analysis, should ABC Company invest in this new machine?

Reference no: EM133126319

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