Reference no: EM132714566
You have been provided with the following information regarding the Pharma Manufacturing Company:
Sales Price $25
Variable manufacturing cost per unit 12
Variable marketing cost per unit 3
Fixed manufacturing costs 180,000
Fixed administrative costs 40,000
This information is based on forecasted sales of 25,000 units.
Required:
Problem (a) What are the expected operating profits for the upcoming year?
Problem (b) What is the break-even point in units?
Problem (c) What is the break-even point in dollars?
Problem (d) If $80,000 of operating profits is desired, how many units must be sold?
Problem (e) How much in sales dollars is required to generate operating profits of $75,000?
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