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You Have Been Provided with the Following Information Regarding the Fremont

Question 49

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You have been provided with the following information regarding the Fremont Manufacturing Company:
 Sales price $50 Variable manufacturing cost  per unit 24 Variable marketing cost per  unit 6 Fixed manufacturing costs 360,000 Fixed administrative costs 80,000\begin{array} { | l | r | } \hline \text { Sales price } & \$ 50 \\\hline \text { Variable manufacturing cost } \\\text { per unit } & 24 \\\hline \text { Variable marketing cost per } \\\text { unit }&6\\\hline \text { Fixed manufacturing costs } & 360,000 \\\hline \text { Fixed administrative costs } & 80,000 \\\hline\end{array}
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?

Correct Answer:

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blured image (a)[($50 - 24 - 6)× 33,000] -...

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