You Have Been Provided with the Following Information Regarding the Ralston

question 100

Essay

You have been provided with the following information regarding the Ralston Manufacturing Company:
$\begin{array}{llr} \text {Sales price } &\$50\\ \text { Variable manufacturing cost per unit } &24\\ \text { Fixed manufacturing costs per unit} &12\\ \text { Variable marketing cost per unit } &6\\ \text { Fixed administrative costs per unit} &3\\\end{array}$



This information is based on forecasted sales of 30,000 units.
Required:
(a) What is the expected operating profit for the upcoming year?
(b) What is the break-even point in units?
(c) If $160,000 of operating profit is desired, how many units must be sold?

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Definitions:

Retirement Goal

A financial target or savings plan aimed at ensuring financial security for an individual upon retirement.

Compounded Annually

This refers to the process where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Invest

The act of allocating resources, usually monetary, in the expectation of generating an income or profit.