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:

Total Liabilities

The combined total of all current and long-term financial obligations owed by an entity at any given time.

Common-Sized Income Statement

An income statement in which each line item is expressed as a percentage of sales, facilitating the comparison across different periods or companies.

Net Income

The final profit of a company calculated by deducting all expenses and taxes from its revenue.

Common-Sized Financial Statement

A financial statement in which each line item is expressed as a percentage of a certain base figure, facilitating comparison across periods or companies.