Question :
30. Bug-Ez Corporation manufactures one product, Itch-A-Way, which, when applied : 1369894
30. Bug-Ez Corporation manufactures one product, Itch-A-Way, which, when applied to a bug bite, soothes the itch. The unit contribution margin for Itch-A-Way is $4.20, while total fixed costs amount to $537,000. Given a selling price of $8.25 per unit and a target profit of $147,000, Bug-Ez must have total sales of:
A)$1,054,821
B)$709,334
C)$683,999
D)$1,343,578
31. The Manhattan Company sells its one and only product for $89.00 per unit. Variable costs per unit amount to $63.50, and total fixed costs are $3,697,500. If management desires a before tax profit of $765,000, total sales revenue must equal:
A)$ 2,670,000
B)$ 4,462,500
C)$15,575,000
D)$68,085,000
32. The Manhattan Company sells its one and only product for $89.00 per unit. Variable costs per unit amount to $63.50, and total fixed costs are $3,697,500. If Manhattan increases its total fixed costs by $267,500 it can reduce variable costs by $5.00 per unit. How will this affect the breakeven point in units?
A)The breakeven point will increase 48,415 units
B)The breakeven point will decrease 15,000 units
C)The breakeven point will increase 22,317 units
D)The breakeven point will decrease 32,540 units
33. The Manhattan Company sells its one and only product for $89.00 per unit. Variable costs per unit amount to $63.50, and total fixed costs are $3,697,500. If Manhattan increases its selling price to $95 how will this affect the breakeven point in units?
A)The breakeven point will increase 28,889 units
B)The breakeven point will decrease 116,111 units
C)The breakeven point will increase 116,111 units
D)The breakeven point will decrease 28,889 units
34. The Foggy Daze Company sells a “one size fits all” rain poncho for $11.50. Variable costs per unit are $3.86, while total fixed costs amount to $572,200. The corporate tax rate is 30% and the company wants to earn an after-tax profit of $209,000. The breakeven point in units is:
A)102,251
B)113,975
C)75,720
D)74,896
35. The Foggy Daze Company sells a “one size fits all” rain poncho for $11.50. Variable costs per unit are $3.86, while total fixed costs amount to $572,200. The corporate tax rate is 30% and the company wants to earn an after-tax profit of $209,000. The total sales needed to break even are:
A)$1,175,886
B)$1,310,712
C)$870,780
D)$861,304
36. The Foggy Daze Company sells a “one size fits all” rain poncho for $11.50. Variable costs per unit are $3.86, while total fixed costs amount to $572,200. The corporate tax rate is 30% and the company wants to earn an after-tax profit of $209,000. How many units must be sold to achieve the after-tax profit goal?
A)102,251
B)113,975
C)75,720
D)74,896
37. Kapalua, Inc. manufactures hand held planners. Total fixed costs are $3,950,000, with variable costs per unit of $148.28. The corporate tax rate is 35%. If Kapalua can sell 39,242 units, the per unit selling price necessary to earn an after-tax profit of $1,430,000 must be:
A)$305.00
B)$285.38
C)$353.05
D)$248.94
38. Kapalua, Inc. manufactures hand held planners. The selling price per unit is $355.00, with variable costs per unit of $91.50. The corporate tax rate is 35%. If Kapalua can sell 15,000 units and can earn an after-tax profit of $1,513,000, total fixed costs must be:
A)$3,812,000
B)$3,952,000
C)$1,624,808
D)$1,372,500
Use the following to answer questions 39-41:
Ogallah Inc. sells its product for $9.25 per unit. The variable costs per units are $2.50 and total fixed costs are $452,250. If Ogallah buys new software for the production process at a cost of $55,250, variable costs will be reduced by 20%.
39. The breakeven point prior to the purchase of the computer is:
A)180,900
B)70,000
C)67,000
D)48,892
