You Have Been Provided with the Following Information Regarding the Pharma

question 41

Essay

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

Bad-News Message

Communication specifically crafted to deliver unfavorable information or decisions in a sensitive and effective manner.

Readers Appreciation

The recognition and valuation of readers by tailoring content to their interests, backgrounds, and needs to ensure engagement and satisfaction.

Gradual Introduction

The process of slowly implementing or presenting something new in stages over time.

Presenting Bad News

The careful and considerate communication of unfavorable news or feedback.