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dxpayne dxpayne
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6 years ago
Gates Rubber Company sells cases of hydraulic hoses for $80. The unit variable costs per case are $40 plus a selling commission of 10 percent of sales. Fixed manufacturing costs total $1,000 per month, while fixed selling and administrative costs total $2,000. The company has a tax rate of 40%.

Required:
a.   What is the contribution margin per case?
b.   What is the break-even point in cases?
c.   How many cases must be sold to earn pre-tax profit of $6,000?
d.   How many cases must be sold to earn an after-tax income of $6,000?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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AllopaAllopa
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#1
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6 years ago
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dxpayne Author
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#2
5 years ago
I see. Hmm...

Thanks for confirming, will mark this solved.
wrote...
#3
3 years ago
Thank you
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