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Category > Business & Finance Posted 09 Dec 2017 My Price 10.00

Problem 3-33 Delphi Company

Hello anyone can I get some help with my accounting homework please. Tried doing it on my own and failed. 

Problem 3-33 Delphi Company has developed a new product that will be marketed for the first time next year. The product will have variable costs of $28 per unit. Although the marketing department estimates that 59,500 units could be sold at $48 per unit, Delphi’s management has allocated only enough manufacturing capacity to produce a maximum of 42,500 units a year. The fixed costs associated with the new product are budgeted at $765,000 for the year. Delphi is subject to a 40% tax rate. Calculate contribution margin per unit. Contribution margin per unit $ How many units of the new product must Delphi sell in the next fiscal year to break even? (Use the rounded contribution margin per unit calcuated in the previous part.) units What is the maximum net income that Delphi can earn from sales of the new product in the next fiscal year? (Use the rounded contribution margin per unit calcuated in the previous part.) Maximum net income $ Delphi’s managers have stipulated that they will not authorize production beyond the next fiscal year unless the after-tax profit from the new product is at least $127,500. How many units of the new product must be sold in the next fiscal year to ensure continued production? (Use the rounded contribution margin per unit calcuated in the previous
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Status NEW Posted 09 Dec 2017 02:12 PM My Price 10.00

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