You have been provided with the following information regarding the Pharma Manufacturing Company:
$$\begin{array} { | l | r | }
\hline \text { Sales Price } & \$ 25 \
\hline \text { Variable manufacturing cost per unit } & 12 \
\hline \text { Variable marketing cost per unit } & 3 \
\hline \text { Fixed manufacturing costs } & 180,000 \
\hline \text { Fixed administrative costs } & 40,000 \
\hline
\end{array}$$
This information is based on forecasted sales of 25,000 units.Required:
(a)What are the expected operating profits for the upcoming year?
(b)What is the break-even point in units?
(c)What is the break-even point in dollars?
(d)If $80,000 of operating profits is desired,how many units must be sold?
(e)How much in sales dollars is required to generate operating profits of $75,000?

Question

You have been provided with the following information regarding the Pharma Manufacturing Company:
$$\begin{array} { | l | r | } 
\hline \text { Sales Price } & \$ 25 \
\hline \text { Variable manufacturing cost per unit } & 12 \
\hline \text { Variable marketing cost per unit } & 3 \
\hline \text { Fixed manufacturing costs } & 180,000 \
\hline \text { Fixed administrative costs } & 40,000 \
\hline
\end{array}$$ 
This information is based on forecasted sales of 25,000 units.Required:
(a)What are the expected operating profits for the upcoming year?
(b)What is the break-even point in units?
(c)What is the break-even point in dollars?
(d)If $80,000 of operating profits is desired,how many units must be sold?
(e)How much in sales dollars is required to generate operating profits of $75,000?

Quizplus · Accepted Answer

The Answer of You have been provided with the following information regarding the Pharma Manufacturing Company:
$$\begin{array} { | l | r | } 
\hline \text { Sales Price } & \$ 25 \
\hline \text { Variable manufacturing cost per unit } & 12 \
\hline \text { Variable marketing cost per unit } & 3 \
\hline \text { Fixed manufacturing costs } & 180,000 \
\hline \text { Fixed administrative costs } & 40,000 \
\hline
\end{array}$$ 
This information is based on forecasted sales of 25,000 units.Required:
(a)What are the expected operating profits for the upcoming year?
(b)What is the break-even point in units?
(c)What is the break-even point in dollars?
(d)If $80,000 of operating profits is desired,how many units must be sold?
(e)How much in sales dollars is required to generate operating profits of $75,000?

You Have Been Provided with the Following Information Regarding the Pharma