Question: bauer manufacturing company reported the following data regarding a product...
Bauer Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $100.
|Selling and administrative||$||162,000||per year|
Use the per-unit contribution margin approach to determine the break-even point in units and dollars.
Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $232,000.
Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 12,000 units, how much could it pay in salaries for salespeople and still have a profit of $232,000? (Hint: Use the equation method.)
a. Break-even points in units
Break-even points in dollars
b. Required Sales in units
Required Sales in dollars
c. Fixed cost of salaries