Units Manufactured 100 Direct Materials in Ss Total Cost for

Units Manufactured 100 Direct Materials (in S\'s) Total Cost for Your Direct Material Number 1 Total Cost for Your Direct Material Number 2 Total Cost for Your Direct Material Number 3 Total Direct Materials (in S\'s) 25,116 15,070 10,046 50,232 Direct Labor (in S\'s) 30,116 Variable Factory Overhead (in S\'s) Total Cost for Your F/IO Number1 Total Cost for Your F/O Number2 Total Factory Overhead (in S\'s) 50,232 35,116 85,348 Cost of Goods Manufactured 165,696 (No Beg or End D/M or WIP Inventories) Sales Price Per Unit Units Sold Total Sales in $\'s 3,588 100 358,800 Fixed Cost 25,000 WITH THE ABOVE DATA SOLVE THE FOLLOWING QUESTIONS REGARDING YOUR PRODUCT What is your Product\'s Operating income Record your answer here 2) What is your Produet\'s Contribution Margin per unit? Record your answer here 1,931 3) What is your Product\'s Contribution Margin percent? Record your answer here 4) How Many Units Would Have to be Sold to break even? Record your answer here 13 5) How Many Units Would Have to be Sold to Yield a Target Operating Income of $30,000? Record your answer here 28 6) USING YOUR OPERATING INCOME YOU CALCULATED IN NO. 1 ABOVE, What is your Product\'s Planned Net Income Assuming a Tax Rate of 30%? Record your answer here

Solution

The answers from 1 to 5 is absolutely correct

And answer for 6^th is

Product Planned Net Income = Operating income (1-tax rate)

=$168,104(1-.30)

=$117,673

Note:1 .Actually from operating income we have to deduct Selling and distribution charges and Depreciation, Interest expenses, Tax expense to arrive net income. So we have only Tax expense which is deducted.