The following information for Jennifer’s Framing Supply is given for March:
Sales.
$360,000
Fixed manufacturing costs
35,000
Fixed marketing and administrative costs
25,000
Total fixed costs
60,000
Total variable costs
240,000
Unit price
90
Unit variable manufacturing cost
55
Unit variable marketing cost
5
Compute the following:
a. Monthly operating profit t when sales total $360,000 (as here).
b. Break-even number in units.
c. Number of units sold that would produce an operating profit t of $120,000.
d. Sales dollars required to earn an operating profit t of $20,000.
e. Number of units sold in March.
f. Number of units sold that would produce an operating profit t of 20 percent of sales dollars.