IN ORDER GET FULL CREDIT, I MUST HAVE FULL SOLUTIONS FOR EACH ANSWER OR NO CREDIT WILL BE OFFERED.
ROSS COMPANY MANUFACTURES MOUNTAIN BIKES THAT SELLS FOR $750 EACH. IT’S VARIABLE COST RATIO IS 55% WITH FIXED COSTS AMOUNTING TO $85,000. ROSS WANTS AN AFTER TAX NET INCOME OF $175,000 AFTER PAYING IRS 25%, NORTH CAROLINE 12%, AND MECKLENBURG 5.25%. COMPUTE THE FOLLOWING IF FIXED COSTS ARE EXPECTED TO BE 180,000.
NUMBER OF BIKES TO BE SOLD._________
TAXES PAID TO MECKLENBURG? __________
TOTAL SALES IN DOLLARS.__________________
WHAT IS THE CONTRIBUTION MARGIN PER BIKE?____________
WHAT IS THE TOTAL FOR VARIABLE COSTS?_$________