Could someone please help me out with the following 3 questions?
Frank Corporation manufactures a single product that has a selling price of $25.00 per unit. Fixed expenses total $50,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $15,500, sales in units must be:
Bowe Corporation's fixed monthly expenses are $28,000 and its contribution margin ratio is 62%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $88,000?
Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $42 to buy from farmers and $13 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $18 or processed further for $17 to make the end product industrial fiber that is sold for $50. The beet juice can be sold as is for $33 or processed further for $21 to make the end product refined sugar that is sold for $50.
How much more profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?