12 Jul HOW MANY UNITS MUST PATTERSON SELL TO GENERATE AN AFTER-TAX PROFIT OF $109,200 IF THE TAX RATE IS 35%?
Please see attached and advise on solutions. Nova Southeastern University Wayne Huizenga Graduate School Of Business & Entrepreneurship Assi Document Preview: Nova Southeastern University Wayne Huizenga Graduate School Of Business & Entrepreneurship Assignment for Course: Accounting ACT 5060 Submitted to: Dr. Pendarvis Submitted by: Michelle Martinez Reyes Date of Submission: 07/28/2013 Title of Assignment: Assignment 2 CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: Michelle Martinez Reyes ****************************************** Instructors Grade on Assignment: Instructors Comments: Textbook: Management Accounting: Information for Decision-Making and Strategy Execution – 6.Edition 2012; Anthony A. Atkinson, Robert S. Kaplan; Pearson; ISBN: 9780132567459 Chapter 3 Exercises. Exercise 3-28 (page 99). Breakeven analysis and target profit, taxes – Patterson Parkas Companys sales revenue is $30 per unit, variable costs are $19.50 per unit, and fixed costs are $147,000. Compute Pattersons contribution margin per unit and contribution margin ratio. Determine the number of units Patterson must sell to break even. Determine the sales revenue required to earn (pretax) income equal to 20% of revenue. How many units must Patterson sell to generate an after-tax profit of $109,200 if the tax rate is 35%? Patterson is considering increasing its advertising expenses by $38,500. How much of an increase in sales units is necessary from expanded advertising to justify this expenditure (generate an incremental contribution margin of $38,500)? Exercise 3-38 (page 102). Make-or buy and relevant costs The assembly division of Davenport, Inc., is bidding on an order of 50,000 smart phones. The division is eager to get this order because it has a substantial amount of… Attachments: Reyes–Michel….docx
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