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chapter 3 problems

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solution


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Chapter 3;Work the following problems (show your work);1. Boynton Company manufactures and sells a single product that sells for $480 per unit, variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the contribution margin per unit.;Answer;2.Boynton Company manufactures and sells a single product that sells for $480 per unit, variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the contribution margin ratio.;Answer;3.Boynton Company manufactures and sells a single product that sells for $480 per unit, variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the break-even point in units.;Answer;4.Boynton Company manufactures and sells a single product that sells for $480 per unit, variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the break-even point in dollars.;Answer;5.Boynton Company manufactures and sells a single product that sells for $480 per unit, variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000.Boynton company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the unit sales to earn the target after-tax net income.;Answer;6.Boynton Company manufactures and sells a single product that sells for $480 per unit, variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000.Boynton company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the dollar sales to earn the target after-tax net income.;Answer

 

Paper#35786 | Written in 18-Jul-2015

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