You have been provided with the following information regarding the Fremont Manufacturing Company:
$$\begin{array} { | l | r | }
\hline \text { Sales price } & \$ 50 \
\hline \text { Variable manufacturing cost } \
\text { per unit } & 24 \
\hline \text { Variable marketing cost per } \
\text { unit }&6\
\hline \text { Fixed manufacturing costs } & 360,000 \
\hline \text { Fixed administrative costs } & 80,000 \
\hline
\end{array}$$
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 Fremont Manufacturing Company:
$$\begin{array} { | l | r | } 
\hline \text { Sales price } & \$ 50 \
\hline \text { Variable manufacturing cost } \
\text { per unit } & 24 \
\hline \text { Variable marketing cost per } \
\text { unit }&6\
\hline \text { Fixed manufacturing costs } & 360,000 \
\hline \text { Fixed administrative costs } & 80,000 \
\hline
\end{array}$$ 
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 Fremont Manufacturing Company:
$$\begin{array} { | l | r | } 
\hline \text { Sales price } & \$ 50 \
\hline \text { Variable manufacturing cost } \
\text { per unit } & 24 \
\hline \text { Variable marketing cost per } \
\text { unit }&6\
\hline \text { Fixed manufacturing costs } & 360,000 \
\hline \text { Fixed administrative costs } & 80,000 \
\hline
\end{array}$$ 
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 Fremont