You Have Been Provided with the Following Information Regarding the Fremont

question 18

Essay

You have been provided with the following information regarding the Fremont Manufacturing Company:
$\begin{array}{llr} \text {Sales price } &\$50\\ \text { Variable manufacturing cost per unit } &24\\ \text { Variable marketing cost per unit } &6\\ \text { Fixed manufacturing costs } &360,000\\ \text { Fixed administrative costs } &80,000\\\end{array}$

This information is based on forecasted sales of 33,000 units.
Required:
(a) What is the expected operating profit for the upcoming year?
(b) What is the break-even point in dollars?
(c) How much in sales dollars is required to generate an operating profit of $275,000?