You Have Been Provided with the Following Information Regarding the Pharma

question 40

Essay

You have been provided with the following information regarding the Pharma Manufacturing Company:
$\begin{array}{llr} \text {Sales price } &\$25\\ \text { Variable manufacturing cost per unit } &12\\ \text { Variable marketing cost per unit} &3\\ \text { Fixed manufacturing costs } &180,000\\ \text { Fixed administrative costs} &40,000\\\end{array}$


This information is based on forecasted sales of 25,000 units.
Required:
(a) What are the expected operating profits for the upcoming year?
(b) What is the break-even point in units?
(c) What is the break-even point in dollars?
(d) If $80,000 of operating profits is desired, how many units must be sold?
(e) How much in sales dollars is required to generate operating profits of $75,000?

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Definitions:

Networking Terminology

The specialized vocabulary used to describe and understand networks and their operations.

Network Cable

A cable used to connect and transmit data between computers and network devices.

Wireless Devices

Gadgets that operate without physical connections, using electromagnetic waves to transmit data or communication.

Receiving Connection

The act of establishing a data link or communication channel with another system or device.