You have been provided with the following information regarding the Closure Manufacturing Company:
$\begin{array}{llr}
\text {Sales price } &\$50\
\text { Variable manufacturing cost per unit } &24\
\text { Variable marketing cost per unit} &12\
\text { Fixed manufacturing costs } &6\
\text { Fixed administrative costs} &3\
\end{array}$

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?

Question

You have been provided with the following information regarding the Closure Manufacturing Company:
 $\begin{array}{llr}
  \text {Sales price  } &\$50\
 \text { Variable manufacturing cost per unit } &24\
 \text {  Variable marketing cost per unit} &12\
 \text { Fixed manufacturing costs } &6\
 \text {  Fixed administrative costs} &3\
\end{array}$

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?

Quizplus · Accepted Answer

The Answer of You have been provided with the following information regarding the Closure Manufacturing Company:
 $\begin{array}{llr}
  \text {Sales price  } &\$50\
 \text { Variable manufacturing cost per unit } &24\
 \text {  Variable marketing cost per unit} &12\
 \text { Fixed manufacturing costs } &6\
 \text {  Fixed administrative costs} &3\
\end{array}$

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?

You Have Been Provided with the Following Information Regarding the Closure