(CVP) Seattle Leisure Designs has designed a new athletic suit. The company plans to produce and sell 30,000 units of the new product in the coming year. Annual fixed costs are $600,000, and variable costs are 70 percent of selling price. If the company wants a pre-tax profit of $300,000, at what minimum price must it sell its product?
(CVP) Sheridan Shacks makes portable garden sheds that sell for $1,800 each. Costs are as follows:
Variable production overhead
Variable selling and administrative cost
Fixed production overhead
Fixed selling and administrative
a. How many garden sheds must the company sell to break even?
b. If Sheridan Shacks’ management wants to earn a pre-tax profit of $200,000, how many garden sheds must it sell?
c. If Sheridan Shacks’ management wants to earn a pre-tax profit of $280,000, how many garden sheds must it sell?