You Have Been Provided with the Following Information Regarding the Closure

question 23

Essay

You have been provided with the following information regarding the Closure Manufacturing Company:
$$\begin{array} { | l | r | } \hline \text { Sales Price } & \$ 50 \\\hline \text { Variable manufacturing cost per unit } & 24 \\\hline \text { Fixed manufacturing costs per unit } & 12 \\\hline \text { Variable marketing cost per unit } & 6 \\\hline \text { Fixed administrative costs per unit } & 3 \\\hline\end{array}$$
This information is based on forecasted sales of 33,000 units.
(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?

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Definitions:

TANF

Temporary Assistance for Needy Families, a federal assistance program in the United States designed to help needy families achieve self-sufficiency.

Welfare Rolls

Lists or records of individuals receiving government assistance, typically in the form of cash or food support.

Supplemental Nutrition Assistance Program

The Supplemental Nutrition Assistance Program (SNAP) is a federal assistance program in the United States that provides food-purchasing assistance for low- and no-income people.