Determine the breakeven point in units

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Reference no: EM133093025

Question - Use the following information to answer questions - Sellco Company has the following information the Kayak that it sells:

Sales Price Per Unit $900.00

Less Variable Cost Per Unit $220.00

Fixed Cost $450,000.00

Tax Rate 40%

Target Profit $200,000.00

1. Based on this information, determine the Contribution Margin per unit?

2. Based on the information in Question 1, determine the breakeven point in units?

3. Based on the information in Question 1, determine the break-even point in sales dollars?

4. Based on the information in Question 1, if the company wants to make a target profit before taxes of $200,000, it would need to sell ______________ units.

5. Based on the information in Question 1, if the company wants to make an after tax profit of $200,000, it will have to sell ______________ units.

Reference no: EM133093025

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