What is the expected operating profit for the upcoming year

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Question - You have been provided with the following information regarding the Closure Manufacturing Company:

Sales price $50

Variable manufacturing costs per unit 24

Fixed manufacturing costs per unit 12

Variable marketing costs per unit 6

Fixed administrative costs per unit 3

This information is based on forecasted sales of 33,000 units.

Required -

(a) What is the expected operating profit for the upcoming year?

(b) What is the break-even point in dollars?

(c) How much in sales dollars is required to generate an operating profit of $275,000?

Reference no: EM132642353

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