Reference no: EM132516380

Barnes Corporation produces a number of different types of sports equipment, including tricycles, bicycles (road and mountain bikes), skateboards, roller blades, skates, skis and snowboards.

For the skateboard product line, it is expected that Barnes will incur the following per unit variable manufacturing costs:

Direct material                                $28.50/unit
Direct labor                                   16.25/unit
Variable manufacturing overhead       10.75/unit

• Barnes also expects to incur $1,700,000 in fixed manufacturing overhead, and $640,000 in fixed SG&A costs related to the selling of skateboards. Barnes also expects to sell each skateboard for $69/unit.

Question A) Determine the number of units of skateboards that Barnes must sell in order to at least breakeven. [Your answer should be rounded up the nearest whole number.]

Question B) Barnes wants to earn a profit of $500,000 from its skateboard product line (ignore taxes).

Determine the number of units of skateboards that Barnes must sell in order to earn at least $500,000. [Your answer should be rounded up to the nearest whole number.]

Question C) Based on forecasted sales and costs of the skates for the upcoming fiscal year, it has been determined that Barnes needs to sell at least 230,000 skates to breakeven. It has also been forecasted that the demand for Barnes' skates will be uniformly distributed over the range of 175,000 units to 300,000 units. Determine, the probability that Barnes will at least breakeven on the sales of its skates. [Record your answer as a decimal.]