50.1K

Verified Solution

Link Copied!

1. Greenfield Printers manufactures three computer printer models: Inkjet, Laser, and Impact. Total annual fixed costs are $4,900,000. Other information for the three printers is as follows: Inkjet Laser Selling price per unit $250 $400 Variable cost per unit $100 $150 Sales mix 60 percent 30 perce Assume that the sales mix does not change. Required: Calculate: i. How many units of each printer must be sold to break even? marks] [6 ii. How many units of each printer must be sold to earn an annual profit of $1,112,300? [3.5 marks] iii. How many units of each printer must be sold to achieve an after-tax profit of $73,500. The tax rate is 40%. [4.5 marks] B. Management of Posh Automobile wants to know the margin of safety for a piece of equipment it is purchasing. They have established that the break-even revenue will be $3,957,188 while annual sales will be $4,200,000. Required: Calculate: i. Margin of safety in dollars ($) [2 marks] ii. Margin of safety in percentage (%). [2 marks] 1. Greenfield Printers manufactures three computer printer models: Inkjet, Laser, and Impact. Total annual fixed costs are $4,900,000. Other information for the three printers is as follows: Inkjet Laser Selling price per unit $250 $400 Variable cost per unit $100 $150 Sales mix 60 percent 30 perce Assume that the sales mix does not change. Required: Calculate: i. How many units of each printer must be sold to break even? marks] [6 ii. How many units of each printer must be sold to earn an annual profit of $1,112,300? [3.5 marks] iii. How many units of each printer must be sold to achieve an after-tax profit of $73,500. The tax rate is 40%. [4.5 marks] B. Management of Posh Automobile wants to know the margin of safety for a piece of equipment it is purchasing. They have established that the break-even revenue will be $3,957,188 while annual sales will be $4,200,000. Required: Calculate: i. Margin of safety in dollars ($) [2 marks] ii. Margin of safety in percentage (%). [2 marks]

Answer & Explanation Solved by verified expert

See Answer