What is the unit contribution margin of UV sanitizer

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Reference no: EM133091594

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.

Required -

(a) What is the unit contribution margin of UV sanitizer?

(b) How many units of air purifiers should Greenwald sell to at least break-even in a month?

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

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

Reference no: EM133091594

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