Casper Karts manufactures a three-wheeled shopping cart that sells for $60. Variable cost per shopping cart is $45. Annual fixed cost is $975,000. Casper Kart sold 80,000 shopping carts in this year.
- Please use the format of a contribution margin income statement to calculate the contribution margin (in dollars), unit contribution, and contribution margin ratio for Casper Karts. You can refer to Example 1 in the textbook.
- What will be the break-even point in units and in dollars if we assume that Casper Karts sells this product (the three-wheeled shopping cart) only?
- Please draw the break-even and profit-volume charts in Excel. You will create a few data points to draw graphs. Please refer to Exhibits 4.1 and 4.2 in the textbook. Please add a chart title, specify the lines and units on vertical and horizontal axes, and the numbers on the horizontal axis should align with each tick mark.
- How many units must the company sell to earn a pre-tax income of $900,000?
- If the company’s tax rate is 40 percent, how many units must be sold to earn an after-tax profit of $750,000?
- What is the company’s margin of safety based on the sales of 80,000 shopping carts?
- Assume that there is no change in fixed costs. What will be the expected net income if this company has the sales revenue of $5,700,000?
For custom-written answers, place your order now!
What We Offer
• On-time delivery guarantee
• PhD-level professional writers
• Automatic plagiarism check
• 100% Privacy and Confidentiality
• High Quality custom-written papers
