Problem:
Steve Stiff & Company management provides the following data for the year 2005 planning:
Sales (1,500 units).............$ 25.00 per unit
Variable Cost ................... 10.00 per unit
Fixed Costs .................... $ 15,000
Tax Rate ........................ 40%
Desired Profit ................. $60,000
Determine the following:
a. Unit Contribution Margin
b. Contribution Margin Ratio
c. Breakeven Sales in Units
d. Breakeven Sales in Revenue
e. Breakeven Sales in Units with the Desired Profit
f. Breakeven Sales in Revenue with the Desired Profit
g. Breakeven Sales in Units with the Desired Profit after Taxes
h. Breakeven Sales in Revenue with the Desired Profit after Taxes