chapter 3 problems
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 ___________________
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