Reference no: EM133122424

Question - Move Along Company, a producer of cardboard boxes, has the following information:

Income tax rate 35 percent

Selling price per unit $3.75

Direct Materials per unit $0.75

Direct Labour per unit $0.25

Variable Mfg Over Head per unit $0.75

Total fixed costs $37,500

Required -

1) Calculate Move Along's break even in units (round units up to next whole number)

2) Calculate Move Along's break even in dollars (to two decimals)

3) If Move Along desired $7,000 in Operating Income (before tax), how many units would they need to sell?

4) If Move Along desired $7,000 in Net Income (after tax), how many dollars of sales would they need?