Memo 2 attch

Memo 2 attch - 3) SV=[FC+ After-tax profit/(1-tax rate)]/CM...

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1) y= a +bx variable costs=  $240,000.00  fixed costs=  $155,000.00  395,000 = 155,000 + 240,000x 2) BE(units)= FC/(CM per unit) BE(sales)= FC/(CM ratio) BE(units)= 38.75/40     = 0.97 cases CM=40 BE(sales)= 400,000/.4   =  $1,000,000.00  CM ratio= .4
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Unformatted text preview: 3) SV=[FC+ After-tax profit/(1-tax rate)]/CM SV= 155,000 + 10,000/(.7) SV= 169285.71/40 = 4232.14 cases 4) 5000 = (155,000 + x)/40 x= 45,000 After-tax profit= $31,500.00...
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