What dollar sales volume is currently required

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Question - Greenwald limited manufactures a variety of consumer products, including handsoaps and UV sanitizers. Based on an monthly volume of 10000 units, the predicted cost per unit of an UV sanitizer follows.

Direct materials $13.50

Direct labor $3.50

Factory overhead $9.50

Total $26.50

These cost predictions include $15000 in facility-level fixed factory overhead averaged over 10000 units.

In addition to facility-level fixed factory overhead, monthly fixed selling and administrative cost totals $26,000.

UV sanitizers are currently sold at $50 per unit.

What is the unit contribution margin of UV sanitizer? Round the number to the nearest cent.

How many units of air purifiers should Greenwald sell to at least breakeven in a month? Round up your number.

Assuming an income tax rate of 20 percent, what dollar sales volume is currently required to obtain an after-tax profit of $4,000?

In the absence of income taxes, what sales volume in dollar amount will provide the same profit of $4000?

Reference no: EM133079850

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