## Answers

Calculation of the anticipated Break-even point | |

Break-even sales volume p.m.(for after-tax target profit of $ 60000) | |

Price/box charged to stores | 4.2 |

Less: Variable costs/box | |

Raw material incl.packaging | 1.45 |

Production Labor | 0.5 |

Total variable costs /box | 1.95 |

Contribution/box (4.2-1.95) | 2.25 |

Fixed administrative expenses | 120000 |

Lease cost of mfg. facility(10000*12) | 120000 |

Total fixed costs p.a. | 240000 |

Target After-tax profit | 60000 |

so, Target Before-tax profit=(60000/(1-30%))*100% | 85714 |

So,Break-even sales boxes | |

(Fixed costs+Before-tax target profit)Contribution per unit | |

(240000+85714)/2.25= | 144762 |

boxes p.a. | |

Break-even sales volume p.m.= | 144762/12= |

boxes Per mth. | 12064 |

Breakeven sales $ p.a. | 144762*4.2= |

608000 | |

Breakeven sales $ p.m | 50667 |

Normal Break-even point(No Loss No gain) | |

The break-even sales units= Fixed costs/Contn.per unit | |

ie. 240000/2.25= | |

106667 boxes p.a. & 106667/12= 8889 boxes p.m. | |

is. $ 448001 p.a. OR $ 37334 p.m. | |

If she aims a target after-tax profit of $ 60000 , the target sales volume need to be 12064 boxes p.m.(ie.144762 boxes p.a.) at this price & variable and fixed costs. | |

She needs to aim sales at the break-even point (no loss no gain) initially , as that level itsef (8889 boxes p.m.) is some way to go ,and try to increase sales volume , by adopting more cost-effective marketing strategies. | |

#### Similar Solved Questions

1 answer

##### Influence line

Consider the given continuous beam above and a) Use Müller Breslau Principle and draw the influence line of the shear at point E. Calculate the ordinates at the points A, B, C, D, E and F....

1 answer

##### I need help finding the answer please Suggestions for Solving Organic Spectral Problems Use the mo...

I need help finding the answer please Suggestions for Solving Organic Spectral Problems Use the mo lecular formula to determine the number of rings and/or double bonds 1. HXN + 1 2 2 2 Formula: Doubles bonds and Rings C - Cyclohexane (C,H12) would be 6 -6+ 1 1 for 1 ring or double bond Benzene (C6H6...

1 answer

##### Question 16 So that he can build a battery farm in the middle of the desert,...

Question 16 So that he can build a battery farm in the middle of the desert, Elon takes out a loan of $2,600 million from HSBC bank at 18.00% p.a. compounded monthly and promises to pay it back over four years with equal monthly payments. Eleven months after taking out the loan (just after the eleve...

1 answer

##### Give the name for this molecule: CH2CH H-CEC-C-CH2CHCH3 CH Next) (B of 8) Recheck 1st attempt

Give the name for this molecule: CH2CH H-CEC-C-CH2CHCH3 CH Next) (B of 8) Recheck 1st attempt...

1 answer

##### Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average...

Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average The New York Stock Exchange Index The Standard and Poor's 500 Index The OTQ Composite Index Owners of preferred stock: have limited voting rights. usually receive fixed dividend payments. All of the...

1 answer

##### 4. 3/S points I Pravious Answers For the past decade, rubber powder has been used in...

4. 3/S points I Pravious Answers For the past decade, rubber powder has been used in asphalt cement to improve performance. An article includes a regression of yaxal strength (MPa) on x-cube strength (MPa) based on the following sample data xi 112.3 97.0 92.7 86.0 102.0 99.2 95.8 103.5 89.0 86.7 y| ...

1 answer

##### Your firm purchased 300,000 units of Gamma this round via air transportation. Unfortunately, the Gamma procurements...

Your firm purchased 300,000 units of Gamma this round via air transportation. Unfortunately, the Gamma procurements were underestimated and an additional 100,000 units were purchased and expensed at the emergency (expedited) order rate. Historically, your firm has only used Supplier D for all Gamma ...

1 answer

##### Hetolwing stream function is the stream function for a given potential o (a) Determine the corresponding...

hetolwing stream function is the stream function for a given potential o (a) Determine the corresponding velocity potential nd ih x and y componis of thee welociiy (c) Find the stagnation point(s)...

1 answer

##### 1. Find all the equilibria, draw the phase diagram, and classify equilibria as sources, sinks, or...

1. Find all the equilibria, draw the phase diagram, and classify equilibria as sources, sinks, or nodes, for the equation 1. Find all the equilibria, draw the phase diagram, and classify equilibria as sources, sinks, or nodes, for the equation...

1 answer

##### What forms do personal loans generally come in? Group of answer choices All of these answer...

What forms do personal loans generally come in? Group of answer choices All of these answer choices are correct. Installment credit. Line of credit. Deposit advances....

1 answer

##### 3. (20 points) You can buy or sell a 3.0 % coupon $1,000 par U.S. Treasury...

3. (20 points) You can buy or sell a 3.0 % coupon $1,000 par U.S. Treasury Note that matures in 30 years. The first coupon payment pays 6 months from now, and the Note pays coupons semi-annually until maturity. It also pays par on maturity. The Yield to Maturity of the Note right now (treat this as ...

1 answer

##### Cost classifications for a service company PR 1-3A Obj. 2 A partial list of Foothills Medical...

Cost classifications for a service company PR 1-3A Obj. 2 A partial list of Foothills Medical Center's costs follows: A. Cost of patient meals 8. Nurses' salaries C. Depreciation of X-ray equipment D. Utility costs of the hospital E. Salary of intensive care personnel F. Cost of X-ray test G...

1 answer

##### Question 8: (10 points). (Measuring growth) Given that a firm's return on equity is 22 percent...

Question 8: (10 points). (Measuring growth) Given that a firm's return on equity is 22 percent and management plans to retain 37 percent of earnings for investment purposes, what will be the firm's growth rate? If the firm decides to increase its retention rate, what will happen to the value...

1 answer

##### 8. Consider a newsvendor environment where demand is expected to be uniformly distributed between 1000 and...

8. Consider a newsvendor environment where demand is expected to be uniformly distributed between 1000 and 4000 units. The variable production cost is $20 per unit and the sales price is $50 per unit. In addition, the producer must pay $5 to discard any unsold units. How many units should be produce...

1 answer

##### 1. What is the non-communicable disease that in your opinion, our community should be most concern...

1. What is the non-communicable disease that in your opinion, our community should be most concern with? 2. Who does it currently affect, who is the burden on? 3. How can we address and prevent the issue?...

1 answer

##### (1) (5 marks) True or False? Justify your answer. Answers without correct justification will receive no...

(1) (5 marks) True or False? Justify your answer. Answers without correct justification will receive no credit. (1) A square matrix with the characteristic polynomial X - 413 +212 - +3 is invertible. [23] (II) Matrix in Zs has two distinct eigenvalues. (III) Similar matrices have the same eigenspace...

1 answer

##### How do you identify all vertical asymptotes for #f(x)=(5x)/(x-1)#?

How do you identify all vertical asymptotes for #f(x)=(5x)/(x-1)#?...