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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 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.
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? 3. How many units must the company sell to earn a pre-tax income of $900,000? 4. If the company's tax rate is 40 percent, how many units must be sold to earn an after-tax profit of $750,000? 5. What is the company's margin of safety based on the sales of 80,000 shopping carts? 6. 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?
