Nike inc manufactures a single product thats sells for 180

Reference no: EM13593982

Nike inc. manufactures a single product thats sells for $180 per unit and its total variable cost is $135 per unit. The company's annual Fixed Cost is $562,500.

1. Please use the above information to compute: SHOW ALL WORK

a. Contribution Margin

b. Contribution Margin Ratio

c. Break-Even-Point in Units

d. Break-Even-Point in Dollar of Sales

e. Prepare an Income Statement at Break-Even-Point for the year ended December 31, 2012

2. If Nike Management targets an annual after-tax income of $810,000 in Problem 1 above, and the compny is subject to a 20% income tax rate, assume that fixed cost remains a $562,500, Compute:

a. United Sales to earn the targeted after-tax Net Income

b. Dollr Sales to earn the Targeted after-tax Net Income

Reference no: EM13593982

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