Solution-How many units will have to be sold to achieve the

How many units will have to be sold to achieve the profit

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If you want to obtain a profit after taxes of $ 10,000,000 and fixed costs drop $ 1,000,000.-, assuming a tax rate of 35% and a profit sharing of 10%, how many units will have to be sold to achieve this profit?

Consider the following data:

total cost of materials: $100.000 by unit

total cost of workers: $5.000.000 Monthly

manufacturing expenses: $3.000.000 monthly

fixed costs = ($5.000.000)(12)+($3.000.000)(12)+$2.000.000 = $98.000.000

variable cost of sells= $100.000+($200.000 × 0.1) = $120.000

contribution margin = $200.000-$120.000 = $80.000

Suppose there are annual administrative and sales fixed costs of $ 2,000,000.- and 10% variable depending on sales. The price to the public is $ 200,000.

Reference no: EM132548839

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How many units will have to be sold to achieve the profit

Reference no: EM132548839

Reference no: EM132548839

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