You Have Been Provided with the Following Information Regarding the Pharma

Essay

You have been provided with the following information regarding the Pharma Manufacturing Company:
$\begin{array}{llr} \text {Sales price } &\$25\\ \text { Variable manufacturing cost per unit } &12\\ \text { Variable marketing cost per unit} &3\\ \text { Fixed manufacturing costs } &180,000\\ \text { Fixed administrative costs} &40,000\\\end{array}$


This information is based on forecasted sales of 25,000 units.
Required:
(a) What are the expected operating profits for the upcoming year?
(b) What is the break-even point in units?
(c) What is the break-even point in dollars?
(d) If $80,000 of operating profits is desired, how many units must be sold?
(e) How much in sales dollars is required to generate operating profits of $75,000?