The following information for Jennifer’s Framing Supply is given for March:
|
Sales. |
$360,000 |
|
Fixed manufacturing costs |
35,000 |
|
Fixed marketing and administrative costs |
25,000 |
|
Total fixed costs |
60,000 |
|
Total variable costs |
240,000 |
|
Unit price |
90 |
|
Unit variable manufacturing cost |
55 |
|
Unit variable marketing cost |
5 |
Compute the following:
a. Monthly operating profit t when sales total $360,000 (as here).
b. Break even number in units.
c. Number of units sold that would produce an operating profit t of $120,000.
d. Sales dollars required to earn an operating profit t of $20,000.
e. Number of units sold in March.
f. Number of units sold that would produce an operating profit t of 20 percent of sales dollars.